Bumpy fits and starts

www.enterpriseeconomy.com ^ | 08-23-02 | brian wesbury

[john bell hood]

Recent signs of weaker growth, from purchasing managers to the leading indicators, are clearly of concern. However, productivity remains strong, real interest rates remain near zero, initial unemployment claims remain on a downtrend, housing is setting a record pace, and for the first time in almost two years, business investment in equipment and software turned positive this spring. More importantly, past data suggest that "fits and starts" are normal. The ISM index bounced up and down like a yo-yo throughout the 1990s, yet we experienced the longest sustained recovery in U.S. history. Why should this time be any different?

Excerpt. Rest of article.

[john bell hood]

The economy is growing, but it's a sluggish growth. I'm still concerned that bad policy in Washington could derail it. Bush needs to be out front more, calling for more tax cuts and trying to keep spending in check.