The Forecast: Mostly Sun, But Watch the Clouds.

This article discusses the effects of rising oil, housing, and interest rates on the economic forecast of 2006. Solid growth in the U.S. economy during the first quarter of 2006, with only a slight pickup in inflation, exceeded the expectations of many forecasters. However, higher gasoline prices could begin to affect consumer spending during the summer of 2006. Federal tightening of interest rates in response to soaring energy costs could also damage the real estate market.