Steven Wood Quotations | Page 2

Despite the loosening of the labor markets, income gains remain sufficient to support spending at a moderate pace.

Despite the brief moderation in consumer attitudes, consumers appear to be spending heavily still, urged on by widespread hiring and income growth.

Despite some better-than-expected data over the past two weeks, this report is sufficiently gloomy to force the Fed to ease next Tuesday and retain their bias toward further economic weakness.

Despite rising interest rates and higher energy costs, the consumer remains remarkably resilient.

Despite improving international economies, the strong dollar is limiting the expected rebound in exports.

Despite this gain the outlook is still for sluggish growth over the next six months,

Despite the strength during the quarter, the period ended on a much weaker note, suggesting (second-quarter) growth is likely to be weaker. These data are unlikely to sway the (Fed) from easing again at (its) May 15th meeting.

Any slowing in sales will reveal moderate overbuilding.

The burden of higher interest rates will weigh down the housing industry further. This, in turn, should lead to moderated residential construction and home related consumer spending on goods such as furniture, appliances, and home improvement items in coming months.

The budget outlook has improved slightly so far this fiscal year, largely during to still robust tax receipts.

Bad economic times don't last forever and the U.S. economy is very vibrant. But at this point that is just pure forecast.

As long as we can access it, I'm perfectly happy. Everything is pretty virtual at the moment. If there is a consolidated exchange, it makes it easier for us and the brokers.

As long as average job creation remains around or exceeds 200,000 and the unemployment rate continues to decline, the FOMC will continue to raise interest rates.

This drop may be more due to temporary factors like wet weather than the beginning of a major reversal in housing.

Although these data were better than expected, job creation is still weak.

Although the level of sales is still relatively high, the solid growth of the past three years has been arrested, helping the Fed's efforts to slow the pace of economic growth. However, mortgage rates have declined over the last six weeks, so further substantial weakness may not be forthcoming.

Although the fundamentals have deteriorated builders have been cautious, so there is no imbalance of unsold new homes. Therefore, as long as new home sales are maintained near current levels, housing construction can also continue near these levels.

Although the (Fed) will not be pleased with the sharp decline in productivity growth over the past year, they will view it as a cyclical phenomenon rather than a retreat from the productivity-led expansion of the past 5 years.

Although real consumer spending was strong it has slowed for two consecutive quarters and finished Q1 with very little momentum. In order to sustain recent strength in real consumer spending, job creation will need to accelerate further.

Although productivity is not likely to return to the supercharged pace of last year, it is likely to settle in comfortably above the 1.5 percent average pace during the 20 years before 1995.

Although mortgage rates have declined over the past three weeks, mortgage applications volumes have continued to fall. This is partially due to the flat yield curve and partially due to tighter lending standards by financial institutions.

Although manufacturing activity is still expanding, momentum in the manufacturing sector has clearly faded. This report confirms that the FOMC was correct in pausing their tightening cycle at last week's meeting.

Although inventory rebalancing is well underway, weak sales and elevated inventory-to-sales ratios will keep downward pressure on industrial production and manufacturing employment, ... This situation is unlikely to improve until spending accelerates.

Although housing should slow modestly over the balance of the year, it is unlikely to generate the major weakness typically associated with housing during an economic downturn.

Although home buying remains at relatively high levels, and though no longer robust, refinancing activity has slumped. Less refinancing activity should dampen consumer spending.

Although home buying remains at relatively high levels, although no longer robust, refinancing activity has slumped. Less refinancing activity should dampen consumer spending.

Although higher interest rates appear to have begun to have a negative impact on housing activity and consumer spending, sturdy domestic demand and improving international economies have generated an acceleration in manufacturing activity.

This month's modest gain indicates that the sharp rebound from the post-Hurricane Katrina meltdown has been completed. The gentle slowing trend that had been in place for much of 2005 may have been halted, but it is too soon to tell with any confidence.

It is unlikely that the region is really an oasis of activity in an otherwise bleak manufacturing landscape.

It's another straw on the camel's back toward higher rates, ... but it isn't the straw that breaks the camel's back.

It's really easy to get into a new house; it's really difficult to go back to an apartment.

It's unclear whether the declines are related to year-end concerns or to a more general softening in manufacturing activity, but they do add evidence to the (Fed's) forecast for slower growth going forward.

Despite a robust economy and tight labor markets, inflation is still low and steady. These data provide some relief for the Federal Open Market Committee.

Consumer optimism climbed higher in December after soaring in November. This followed huge back-to-back declines in the aftermath of Hurricanes Katrina and Rita and the associated surge in energy prices.

Economic activity flattened out at the end of the summer, suggesting that the nascent recovery may have already been aborted.

Slowing income gains and increased uncertainty have savaged consumer spending. This has removed the only major support for the economy, insuring the recession will last, at least, into early next year.

Slower output and employment growth is dampening real income gains, which in turn is slowing spending, ... Although the monthly data continue to be quite volatile during this transition period, the underlying trends are unmistakable -- the economy is slowing from its torrid pace.

Slack demand and intense competition are preventing companies from raising prices.

Sharp production cuts will continue to bring down inventories, which will set the stage for the economic recovery when spending revives.

The Fed will welcome this report as it suggests that slower economic growth will be extended into the third quarter. The probability of an August rate increase continues to diminish and is now below 50 percent.

The (Fed) will continue to focus policy on reviving economic growth.

The (Fed policy makers) will welcome this data as providing further confirmation that the slowing of economic growth in Q2 (the second quarter) has been extended into Q3,

The (Fed) may slow the pace of easing but they cannot stop yet.

Inflation is sufficiently low and tame -- and the economic outlook is sufficiently uncertain -- to be of little concern to the Fed at present.

Increased demand in expanding economies abroad and continued robust conditions at home support the production outlook, given the low inventory environment. The Fed is sure to view the economy as expanding at too fast a pace now that manufacturing is coming back and consumption remains quite strong.

Importantly for the Fed, the pace of real consumer spending slowed in March, and combined with early forecasts for lower vehicle and retail sales for April, suggests there is some scope for slower growth in the second quarter,

Industrial activity is contracting across a broad set of industries, reflecting the declines in both consumer and business spending.

In an environment of slower growth, steady job creation, weaker productivity gains, and modestly rising inflation that we envision for 2005, the FOMC will continue to lift its target federal funds rate.

If you've had very quick home-price appreciation, you don't have to raise rents too much. But if home-price appreciation slows, landlords will have to raise rents to start to cover that negative cash flow.

Inventory building is slightly stronger in January and February than it was in 4Q, suggesting that inventory investment is likely to add modestly to Q1 GDP growth,

Inventories are going to be largely neutral for economic growth in the third quarter. In the fourth quarter, as businesses ramp up production to rebuild inventories, that will mean more hiring, more production and a stronger economic environment.

In the past year, ... the number of people receiving state benefits has increased by more than a million. Although the pace of layoffs has eased, job creation remains nonexistent.

Clearly, the best news on inflation is past. These data show that households were spending aggressively last year and that there is a great deal of spending momentum coming into 2000. The Fed needs to tighten now, and they will.

Higher interest rates have been weathered by home buyers through the use of adept home financing techniques. Nevertheless, the resilience in the housing sector will support further monetary tightening by the Fed.

Higher claims suggest slower job gains, which should dampen income growth, consumer spending, and overall economic activity.

Housing fundamentals are deteriorating. Mortgage rates have been flat since the beginning of the year. Job creation and income growth has slowed. Equity markets have plunged over the past year. And consumer confidence has tumbled. Moreover, mortgage applications have trailed off. All of these suggest that home sales should weaken over the next several months.

Housing fundamentals are deteriorating, ... Mortgage rates have been flat since the beginning of the year. Job creation and income growth has slowed. Equity markets have plunged over the past year. And consumer confidence has tumbled. Moreover, mortgage applications have trailed off. All of these suggest that home sales should weaken over the next several months.

Housing activity, which has contributed significantly to economic growth over the past 2-1/2 years, has now passed its peak and will be largely neutral to negative over the next several quarters, ... This slowdown will be welcomed at the Federal Reserve.

Housing activity remains quite robust despite the slowing economy, decline in jobs, and faltering stock market.

Households' economic attitudes have declined modestly over the last six months, ... But the level suggests consumers remain very optimistic about their personal financial condition.

Households are maintaining relatively optimistic assessments of economic conditions, largely in defiance of actual events.

Housing-related activity has definitely slowed and its contributions to economic growth, both direct and indirect, will fade over the next couple of quarters.

Home sales should weaken over the next several months.

However, the jump in new orders was too narrowly concentrated in civilian aircraft and defense orders to offer much more than modest encouragement. Although the worst may be over for the manufacturing sector, any recovery is likely to be sluggish.

Graham Machinery Group?s goal is really not to have the infrastructure to support every small little company in the world, but to have more strategic relationships of value, with responsible growth.

The manufacturing sector continues to grow at a moderate pace but with less strength than in the prior couple of months.

The initial wave of layoffs in those industries most directly affected by the terrorist attacks has passed. However, there is another wave rolling to shore. This second wave will be from the subsequent economic dislocations caused by the Sept. 11 events and be much more diffused through the economy.

The FOMC will be pleased with this report,

The FOMC is smiling, as their preferred scenario is largely unfolding.

The FOMC (Federal Open Market Committee, the Fed's policy-making arm) will look at these data as being benign, ... No change in interest rates is expected at next week's meeting although the committee will retain its bias toward tightening.

The general slowing in the growth of the leading indicators over the past year suggests the pace of economic growth should gradually slow over the next three to six to nine months.

The gentle slowing trend that had been in place for much of 2005 appears to have been halted and partially reversed. However, like many other economic relationships, the one between the index of leading indicators and subsequent economic growth has loosened significantly in recent years.

The economy is in recession. The manufacturing recession began more than a year ago. The non-manufacturing recession began more recently. But the contraction has begun.

The Committee is placing more weight on current data releases and, therefore, less weight on forecasts of economic activity and inflation. What I'm foreseeing is that the Fed is going to keep on tightening due to the economy being stronger in the first half of the year.

The deterioration in economic activity would argue for a more aggressive move, but the Fed has rarely moved by more than (half a point) during Greenspan's tenure,

The January gain in construction spending was surprisingly weak given the recent strength in housing starts and unseasonably warm weather.

The level of economic optimism is still quite high, especially given the continued sluggishness in the economy, rising joblessness, corporate profits warnings and equity market volatility,

The leading indicators have been much more volatile since Hurricane Katrina. However, the trend has been generally flat over the past six months, at levels that are well below where they were 12 to 18 months ago.