earnings bulletin december 27 2006 decision economics 1 s&p 500 industry forecasts fourth quarter update by lawrence horwitz highlights the de top down forecast shows operating eps growing above long term trend even as economy slows but deceleration is substantial 9 4 in 2007 and 8 to 2008 compared with 16 this more optimistic than street strategists slightly below bottom up analysts consensus who earlier downgraded energy sector for coming year after autumn s price declines growth led technology industrials utilities generally at a slower pace view housing major cyclical wave underlying medium affecting suppliers financials barring rapid increase unit labor costs margins non commodity industries should deteriorate only modestly still overweight equities macro backdrop little changed economic potential gdp 2 5 or about same drag on least through q1 nominal decelerates 0
