In This Issue:
Modest Job Growth—Still No Boom
-Gains in employment, the ISM manufacturing index and factory orders reported this week support our view for modest economic growth for this year, but there is no sign that elevated first quarter gains will be sustained.
-The labor market added 88,000 nonfarm jobs in March, with improvement in services and construction sectors. We also saw continued improvement in hours worked but a slowdown in average hourly earnings. This report will support continued consumer spending gains and modest economic growth, but there is no suggestion that the boom some thought would begin this year is in place.