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Administration lowers growth projections

By TIMES STAFF and TIMES WIRES
Published November 22, 2006

The White House on Tuesday lowered its forecast for economic growth this year and into 2008, reflecting the drag from the housing slump. Even with the downgrade, though, the Bush administration is predicting that the unemployment rate will turn out to be slightly lower than previously thought. Under the administration's new forecast, gross domestic product will grow by 3.1 percent, as measured from the fourth quarter of last year to the fourth quarter of this year. That's down considerably from a projection of 3.6 percent made during in early June, but would still represent decent growth, especially given the strain on overall economic activity from the housing slump. GDP measures the value of all goods and services produced within the United States and is the best measure of the country's economic standing. In 2007, the White House is now expecting the economy to grow by 2.9 percent - also lower than its previous forecast for 3.3 percent growth.

Honeywell wins Army contract

Honeywell International in Clearwater has been awarded a $38.6-million contract by the Army to provide assorted systems for Bradley and Abrams tanks. The award, which was a sole source contract, expires in May 2010. All work will be performed at Honeywell's Clearwater plant.

Panel to address security at port

The Tampa Port Authority will set up a new committee with tenants and port users to discuss security procedures. The committee, consisting of Port of Tampa Maritime Industries Association members and port authority staff, will review the port's security plan and discuss changes allowed under state and federal law. Tenants and ports users complained this summer that the public agency changed procedures for vehicles entering the port without consulting them.

Smaller Winn-Dixie out of bankruptcy

Winn-Dixie Stores Inc. emerged from bankruptcy Tuesday, 21 months after the grocery chain filed for Chapter 11 protection due to huge financial losses caused by competitive pressures. The new Winn-Dixie is much smaller than the troubled company that filed for bankruptcy on Feb. 20, 2005. It has 522 stores in five states and employs about 55,000 people. It had 920 stores in eight states and the Bahamas and 79,000 employees when it sought protection.

Fed official still wary of inflation

Though price pressures have eased compared to the start of the year, inflation remains "uncomfortably elevated," Federal Reserve Gov. Kevin Warsh said Tuesday. Financial markets project that inflation will continue to come down at a gradual rate, Warsh said to a conference at the New York Stock Exchange, but "there remain, I believe, clear upside risks to that inflation outlook." That somewhat hawkish inflation view comes on the heels of surprisingly soft October inflation reports.

[Last modified November 21, 2006, 23:54:24]