(Reuters circulated the following on October 24.)
CHICAGO — The U.S. economy could see growth decline further in 2008, depending on the full impact of the U.S. housing sector slowdown, the top executive of railroad Burlington Northern Santa Fe Corp. said on Tuesday.
“The economy could get worse in 2008,” Chief Executive Matt Rose said in a telephone interview. “Home foreclosures haven’t played out yet, and we should see that happen in the first quarter of next year.”
Once the full impact of the foreclosures is known, then the underlying strength of the economy should be clear, Rose said. In the meantime, “spillover” from the housing slowdown has affected consumer spending, he said.
But unless there is a prolonged and pronounced slowdown of the U.S. economy, there should be no impact on the railroad’s prices, Rose added.