Holiday sales were less than stellar, but the labor market remains surprisingly tight. Factory activity was slow, but manufacturers are optimistic about the coming months. Labor markets are beginning to ease, and businesses are cautious about the 6 month outlook. Builders are upbeat about the coming months due to lower interest rates expectations, with the Memphis and Little Rock areas already reporting a pickup in retail sales. The labor market still remains tight.
Manufacturers are however, concerned about the rising energy prices.
Credit availability is down for office construction and high tech firms. The high natural gas prices have caused some plants to close down. The US economy still needs to be slowed down. Costs held in check by productivity gains. Energy prices are a threat to containing inflation.