Mortgage purchase applications continue to track downwards, suggesting that most of the expected pop in housing sales in January was weather-related.
Gains in employment and the stock market continue to support confidence. Household income is expected to grow at rates that will sustain growth in consumer spending.
With the expansion projected to accelerate in the third quarter and inflation projected to be contained, the Fed is expected to 'play the same tune' and 'dance the same step' into early 2006.
The expected drop in aircraft orders is strictly month-to- month noise and does not have any impact on the outlook for growth.
Demand for capital goods in overseas markets is expected to remain firm in the months ahead as cyclical recoveries in Europe and Japan are gaining momentum.
The warm weather in January will provide a temporary upward boost to housing construction, but activity is expected to taper off in February.