Key economic report shows weakness
The nation's annual growth rate in 2007's final quarter unrevised an anemic 0.6%.
NEW YORK (CNNMoney.com) -- Economic growth was nearly flat in the last three months of 2007, according to a government report released Thursday.
The Commerce Department's final reading on gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 0.6%, adjusted for inflation, in the fourth quarter. The reading was unchanged from the preliminary fourth-quarter reading and in line with economists' expectations.
In the third quarter, the economy grew at an annual rate of 4.9%.
Gregory Miller, chief economist at Sun Trust Banks, thinks the downward trend is likely to continue in the first quarter.
"We now have an economy that has geared down," Miller said.
"The data we've got so far suggest that the GDP number for next quarter is likely to be negative," he added.
Many economists, including Miller, believe that the economy entered a recession in the last month of 2007, when the initial GDP estimate of 0.6% was released.
Thursday's report is the latest in a string of troubling reports that indicate economic weakness.
On Wednesday, the Commerce Department said orders to factories for big-ticket items fell sharply. And a report from the Census Bureau showed sales of new homes falling to their lowest level in 13 years.
Declines in the labor market have also contributed to the current softening in economic activity. However, a report released Thursday by the Labor Department found that new filings for unemployment benefits fell last week.
Overall, the anemic growth in the country's GDP suggests that the economy is facing a prolonged period of contraction, Miller said.
"It's going to be a while before we turn this around," he said. 
