There is not a lot to talk about this morning, although a number of
economic indicators are expected later this week. These indicators
include retail sales (Wednesday), industrial production (Thursday),
and housing starts (Friday). All of them are expected to be positive.
The White House did announce that the current deficit trend for the
begining of the year suggests the deficit will not reach the initially
anticipated record level. While this is welcoming, the fact remains
that the deficit will still be near the record set last year.
Finally, it appears that Americans are not paying down household debt
as fast as they have following previous deep recessions. This suggests
that many households are struggling to rebalance their budgets, and
are probably at or near the maximum rate of debt reduction. If so,
consumer spending is likely to grow slowly until more Americans find
gainful employment or wages rise.
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