Once again, it’s too close to call.
The latest batch of economic data released so far this week suggests there’s reason for hope. Sort of. Maybe. Perhaps.
Let’s start with construction spending, which rose by 0.2% in March, the Census Bureau reported on Monday. That’s the second monthly rise in a row, reversing what had been a year of declines or virtually unchanged reports on construction spending. Unfortunately, on a rolling 12-month basis, the ship is still sinking. The 2% drop in construction spending in March compared to a year earlier is one of the sharpest declines in recent history, second only to January’s slightly bigger stumble.
Rather, the obvious good news on Monday was the fact that disposable personal income continued rising in March. In fact, March’s numbers show that income advanced by 0.7%, among the stronger paces in recent history, the Bureau of Economic Analysis advised. Alas, Joe Sixpack seemed reluctant to spend that windfall. Personal consumption expenditures rose by only 0.3% in March, a fairly middling reading of late, and down sharply from February’s 0.7% surge.