It's official now. The world's biggest economy is slowing down. US GDP has increased by a feeble 0.6% in the October-December quarter. Compare this to the previous quarter, when the economy clocked in at a sizzling 4.9% growth rate. Government data reveals that US corporate profits fell 3.3% in the fourth quarter of 2007.

According to CNBC's Steve Leisman, "The figure of 0.6% is not worse or negative. It is the exactly the same as the previous information we had on the number. It also looks like we are on track to do 0.8%. Again that is very low for the US economy. But some people are saying that maybe we just avoid a recession here. If we think about it, it is just like one of those planes that comes in for a landing and then kind of aborts the landing. You come in and then you kind of scoop back up. There is some hope that may be in Q2 or Q3 we get a little bit more positive."