Bush Aide Says Housing Woes Worse Than Expected

WASHINGTON (Reuters) - A housing slowdown that was “more pronounced” than expected contributed to the White House’s decision to cut its forecast for economic growth in 2008, a senior Bush administration official said on Thursday.

“We expect that at least through the first half of 2008 housing will have adverse effects on GDP growth,” said Edward Lazear, chairman of the White House Council of Economic Advisers.

He spoke after the White House released an economic forecast in which it reduced its projection for gross domestic growth in 2008 to 2.7 percent, down from the 3.1 percent rate forecast about six months ago.