The economy grew an annualized 0.6% in the fourth quarter much below median estimates of 1.2% and that markets the lowest pace of growth since the economy suffered post 2002 recession; and that is well down from 4.9% expansion in the previous quarter; as the Commerce Department reported today.

The most important aspect was the slowing of investment in houses falling at the fastest rate in 26 years shedding a total of 1.2% from growth, construction is now down a total of 29% over the past two years as the housing slump now markets the biggest since 1982.

Consumption also came below estimates at 2% adding 1.4% to growth after adding near the 2% in the previous quarter to growth. Individual’s willingness to spend rather depends on income and the labor market did slow in those months, nevertheless the ADP report today reported a strong 130 thousand jobs added in January to the economy by the private sector after a revised 38K. The report did not prove still to be dependable and comprehensive to actually nonfarm payroll figures yet, nowadays everything counts.

That all takes growth for 2007 to a total of 2.2% -the slowest rate since 2002- and slowing from the previous year, where the economy expanded in 2006 2.9 percent.

The favorite inflation measure for the Feds comes to add misery as they are a few hours away form cutting rates for the second time in 9 days. As I said earlier to you dear reader the feds are to refer to inflationary levels in the economy though they are on mission “save growth” yet it still matters. The PCE grew much stronger in the quarter with 3.9% from 1.8% previous, while the favorite remains the core which also rose to 2.7% while the previous quarter it was 2.0%.

The FOMC deliberates the final votes now and I don’t think they will change their mind regarding that decision, as I said they can’t risk loosing that business confidence; the market remains jittery until the zero hour were the decision will be out, you never know dear reader EVERYTHING now is a possibility we can’t take anything for granted anymore as PANIC roams the markets…