A dip in the latest consumer price index (CPI) growth figures brings the inflation measure back in line with the Fed target of 2.0%. Inflationary pressures appear contained, easing Fed motivation to implement restrictive monetary policy.
Personal consumption continues to grow at a modest pace. The down-turn in expenditure on services would be cause for concern — this normally precedes a recession — if not for a strong rise in expenditure on durables.
Manufacturers new orders for capital goods display a similar recovery.
The housing recovery continues at a modest pace.
Construction spending as a percentage of GDP remains soft, suggesting that the recovery still has plenty of room for improvement.