The two areas that drive our economy are consumer’s wealth factors, how much are they earning and are they getting raises. Also construction spending because housing is an important part of wealth-building for most people, and if they are buying, builders build to meet the demand.
On Monday personal income and construction spending for March was reported. Income rose .3% and spending .4%. These are solid numbers and point to a consumer that has money and is spending it. On Tuesday the Construction Spending Report for March was released and it showed a fall of 1.7% when the experts expected it to rise .5% after rising the month before 1%. Though home building is running about 5% higher year-over-year this number was disappointing. Most of the fall was in private construction outlays and the weather seems to be part of the reason. Experts are expecting a bounce back.
These two numbers are still pointing to a healthy economy for the rest of the year.