Momentum Building for Economic Recovery

You wallet may not be expanding,
but the economy is.

A series of economic reports out Friday tell us that while labor
costs remain at historic lows, momentum is building on several
fronts for an economic recovery this year.

Both consumer sentiment and gross domestic product beat
expectations today, as did the producer’s manufacturing index from
Chicago. The news out of Chicago showed rapidly increasing new
orders, and even better, that production was struggling to keep
pace. The result: a strong boost in hiring in January. January was
the fourth straight month of accelerating new orders for the
Chicago PMI.

Other business activity in the GDP equation also showed signs of
strengthening. Increases in fixed investments by busin…