New Data Point to a Cooler Q2

Personal income and construction figures released June 29 prompt Action Economics to cut its GDP forecast for the quarter

A report on U.S. personal income released June 29 tossed some cold water on renewed economic optimism and heightened inflation concerns revealed by the Federal Reserve at the close of the June Federal Open Market Committee (FOMC) meeting (see BusinessWeek.com, 6/28/07, "The Fed's Fiercest Foe"). Yet, a robust reading on Chicago-area manufacturing sentiment released the same day certainly reinforced the new Fed tone.

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