Gains in employment and the stock market continue to support confidence. Household income is expected to grow at rates that will sustain growth in consumer spending.
Business investment is going to be one of the principal drivers of growth in 2006. The consumer will still be there ... (but) certainly won't be as ebullient as the last four years.
Recoveries in Europe and Japan are gaining momentum. This should provide the underpinnings for respectable growth in exports.
Activity in the manufacturing sector picked up early in the second quarter, in line with strong underlying fundamentals in the economy and stronger overseas demand. We can look forward to solid overall output growth in the second quarter of 2006.
In terms of economic growth, the fundamentals are clearly on the side of the U.S.. We don't think there's going to be a lot of additional momentum, but even if (the dollar) treads water, it's still going to be an attractive investment.
The manufacturing sector continues to steam-roll ahead. The stage is set for solid growth in the second quarter.