The Housing-Driven Economy
July 30, 2006 by John TuccilloThe housing downturn is a hot, sexy story. So when the second quarter GDP numbers came out Friday, the immediate line was how the decline in housing was pulling GDP down with it. No commentary about how the rest of the economy is underperforming, how consumer spending is weakening, exports are lagging, the automobile industry is in the tank"?and how employment putters along. The story is not that"?real estate"?is getting weaker, it's that in all the time the real estate sector has propped up the economy, no other sector has come forward to help. The rest of the story is that the economy will grow even more slowly the rest of this year.














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