The U.S. economy achieved a soft landing in 2006. This was a desirable outcome. The economy needed a break from its rapid, and potentially inflationary, growth in 2004 and 2005, before taking off again. But, that new flight has been delayed. The aggregate economy has remained mired in slow growth in the first half of 2007. Pockets of the economy, such as the labor market, have been strong, but a weak housing sector has limited overall growth. Further, signs point to one or two more quarters of weaker growth, before the economy is able to take off again.
Austin, John; Decker, Chris; Doering, Tom; Goss, Ernie; Baker, Philip; Johnson, Bruce; Johnson, Lisa; Lemke, Ken; Schwarz, Franz; Strain, Scott; and Thompson, Eric, "A Soft Landing and a Long Layover" (2007). Economics Faculty Publications. 3.