The biggest red flag is the crashing housing market, but in spite of that, GDP is projected to continue growing in 2007 and 2008.

KEY ECONOMIC DATA
Economic Indicator
(YOY %)
2006 2007E 2008E 1Q 07E 2Q 07E 3Q 07E 4Q 07E
GDP Growth 3.40% 2.50% 3.00% 2.30% 2.30% 2.50% 2.60%
Personal Consumption 3.20 3.30 3.10 3.30 3.40 3.50 3.20
Business Investment 7.20 3.20 5.30 2.90 3.40 2.20 4.20
Housing Investment (-4.2) (-13.1) (-0.3) (-16.4) (-15.9) (-12.5) (-7.6)
CPI Inflation 3.20 2.20 2.20 2.40 1.90 1.80 2.90
Unemployment Rate 4.60 4.70 4.90 4.70 4.70 4.70 4.80
S&P 500 Profits ($ per share) 15.70 6.60 7.40 8.30 4.90 4.00 9.30
Source: Citigroup Investment Research