Brian Bethune
Brian Bethune
borrowing demand driven early expectation higher housing interest line towards translate ultimately
This is in line with our expectation that demand for new housing would 'cool off' towards the end of 2005 and in early 2006 as higher short-term interest rates, driven by the Fed, would ultimately translate into higher long-term borrowing rates.
bias companies demand higher intact quarter raise rates second strong toward
Demand is strong enough for companies to raise prices. This will keep the Fed's bias toward higher rates intact through the second quarter of 2006.
ahead capital cyclical demand europe expected firm gaining goods japan markets months overseas remain
Demand for capital goods in overseas markets is expected to remain firm in the months ahead as cyclical recoveries in Europe and Japan are gaining momentum.
auctions debt demand needs satisfy side supply unusual
New auctions will satisfy an unusual coincidence of needs on the supply and demand side of the fixed-income debt markets.
bonds demand funds insurance pension reports solid underlying
There are reports of solid underlying demand for 30-year bonds from pension funds and insurance companies.
advantage companies cost cover demand expecting pressure strong
We are expecting to see some pressure on inflation. Companies are going to take advantage of strong demand to at least cover their cost increases.
continues demand domestic energy external situation sources supply terms
There is an imbalance in terms of the demand and supply of energy which continues to be satisfied, or is increasingly satisfied, by external sources of energy products. Now we have a situation that has been every more complicated because of a domestic supply shock.
europe gaining growth japan provide
Recoveries in Europe and Japan are gaining momentum. This should provide the underpinnings for respectable growth in exports.
business capacity gaining heading justifies level second strength
Manufacturing is gaining strength heading into the second quarter. We have a level of capacity use that justifies more business investment.
gust wind
That was a gust of wind in the spinnaker.
consumers definitely excuse looked needed provided spending strong weather
We're definitely going to see a very strong first quarter. It looked like consumers were hibernating in December, and all they needed was an excuse to go on a spending spree. The weather provided that.
accelerate early expansion expected fed inflation projected quarter third
With the expansion projected to accelerate in the third quarter and inflation projected to be contained, the Fed is expected to 'play the same tune' and 'dance the same step' into early 2006.
baton commercial ease expect housing leadership momentum overall pattern public remains starts taking
The overall momentum in construction remains solid. We expect this pattern to continue, with public and commercial construction taking the leadership baton in 2006 as housing starts ease back moderately.
impressive industries kicked quarter second services
Services industries kicked off the second quarter with very impressive momentum.