Brian Bethune
Brian Bethune
activity gains job normal overall solid start terms
We'll have very solid overall job gains that will punctuate the start of more normal activity in terms of employment,
activity early economy forward growth line output overall overseas picked quarter second sector solid strong stronger underlying
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.
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.
combined confidence consumer employment further gains levels overall quarter setting solid stage
Further gains in employment combined with better levels for consumer confidence overall are setting the stage for very solid consumption gains in the first quarter of 2006.
asia certainly elizabeth europe fairly improving japan major markets overseas queen slowly solid turning underlying
The major markets overseas - Europe, Japan and Asia - have fairly solid underlying momentum. Japan is certainly improving and Europe is more like the Queen Elizabeth slowly turning around.
continues growth second sector solid stage
The manufacturing sector continues to steam-roll ahead. The stage is set for solid growth in the second quarter.
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.
impressive industries kicked quarter second services
Services industries kicked off the second quarter with very impressive momentum.
coming existing following northeast peaked sales september
Existing sales peaked nationally back in September and have been coming down. The Northeast is following that pattern.
fed quite response robotic start sudden
The Fed has been kind of on autopilot here for quite a while, ... Now all of a sudden they're going to have to start doing some work. I don't think a robotic response is appropriate here.
activity boost expected housing january provide temporary warm weather
The warm weather in January will provide a temporary upward boost to housing construction, but activity is expected to taper off in February.
cooling federal gradual housing market news welcome
The gradual cooling off of the housing market will be welcome news at the Federal Reserve.
continued core drop energy federal inflation level months next painful pressure price record relief reserve several spells top vigilant welcome
While the record drop in the top level index spells welcome relief from the painful post-hurricane energy price spikes in September, continued pressure on the core index over the next several months will keep the Federal Reserve vigilant on the inflation watch.
looks road tells terms
What this tells us in terms of the fundamentals is the road looks fine.