Salient to Investors:
The boost to household wealth from rising home values and stock prices is allowing Americans to weather higher payroll taxes and sustain purchases, the biggest part of the economy.
Millan Mulraine at TD Securities USA said the economic outlook is still favorable with fairly robust growth driven by consumer spending, and expects an acceleration in half2.
The median economist expects growth to cool in Q2 to a 1.6 percent annualized rate, and grow at an average pace of 2.4 percent in half2.
Brian Jones at Societe Generale said the economy is on a better footing with more final demand and a variety of drivers for growth. Jones said the economy may cool this quarter, but not by much.
Consumer confidence climbed in May to the highest level in over 5 years, and the S&P/Case-Shiller index of home values in 20 cities advanced in the year to March by the most in 7 months.
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