BizTimes Milwaukee

The U.S. economy will struggle to shrug off a cooled housing market and a burgeoning fiscal deficit in the first half of 2007, but will regain some momentum in the second half of the year. That’s the prognosis of Michael Knetter, dean of the University of Wisconsin-Madison School of Business.

Tempered by a housing market hangover, a slumping American automotive industry and the costly war in Iraq, most economists are projecting slow growth of 2 to 3 percent for the U.S. economy in 2007. As the figures suggest, growth will be attainable. However, that growth will have to be earned, and it will usually come in small increments, as companies that are prepared to make the slow climb are able to grind through or around the obstacles in their paths.

It’s that time of year. The 2007 budgets are in place, business plans have been reviewed, and there’s excitement and consternation in the air. The economy remains a growing concern due to fourth-quarter expectations and results. It seems that with respect to the last three years, nothing can be taken for granted or assumed with any degree of confidence in terms of business growth and profit expectations.

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