A slowing housing market has led the White House to cut its outlook for the U.S. economy through 2008.

The U.S. government said Tuesday it now expects growth in gross domestic product this year of 3.1%, down from a June prediction of 3.6%.

For 2007, the government expects growth of 2.9%, down from 3.3%, while it sees 2008 growth of 3.1%, off from an earlier forecast of 3.2%.

The U.S. housing market has shown several signs of slowing in recent weeks. In October, housing construction plunged to the lowest level in more than six years.

Also included in the latest White House outlook is a projection that the unemployment rate will come it at 4.6% this year, a tick better than the previous forecast of 4.7%. The jobless rate is seen holding steady at 4.6% next year before inching up to 4.8% in 2008.

Consumer prices are seen rising by 2.3% this year, down from an earlier forecast of 3% because of a retreat in energy prices.