Layoffs have been widespread and well publicized, with most workers soon snapped up by other firms. Tight labor availability is not just a short-term concern. Sharply higher energy and tobacco prices accounted for nearly all of the rise. Intense global competition, price-sensitive consumers, more effective use of technology, and the competitive nature of the Internet will help keep inflation in check. Should U.S. economic weakness continue, the Fed will simply cut rates further.
Economic growth is found in most other Pacific Rim nations.
European economic performance has slowed. Russia s economy is growing again. The South American economy should record modest growth this year. Weaker performance is also found in Canada and Mexico. This record-setting U.S. economic expansion has room to run, even as growth is now near a snail s pace.