Retailers also reported generally lackluster sales due in part to adverse weather. An expected upturn would mark the third-consecutive rise in this barometer of industrial activity. Comments Anticipate a much smaller gain in construction spending following the recent strong advances, especially in housing. Do not be surprised to see some softening in commercial construction as well. However, public construction is likely to provide some offset to any pause on the private side.
Comments Look for another solid month of auto and light truck sales.
Lower financing costs should help support sales going forward, although buyers may shift to more fuel-efficient vehicles and less expensive models. The housing market will likely be portrayed as healthy, while reports will probably show companies deferring or cutting back on capital spending. Although layoffs have increased in recent weeks, last week's surge in jobless claims was exaggerated by janitors and other hourly workers filing for claims during the spring break in New York City. The economy will be hard-pressed to provide the jobs necessary to keep up with the labor force growth expected in the period ahead. Any spreading of layoffs would also push the jobless rate higher.