With deficit spending running at about 7% of gdp modest growth should continue, with the ‘hand off’ coming when private sector credit expansion kicks in, which could be a while.

Karim writes:

What respondents are saying…

• “The general upswing in the economy, albeit minor, has had a positive effect.” (Arts, Entertainment & Recreation)
• “Pricing pressures continue to increase as we see the economy begin to improve. Orders are still lagging in our industry.” (Professional, Scientific & Technical Services)
• “Slow pace, but better than last year at this time.” (Accommodation & Food Services)
• “Funding issues and cash flow issues continue to affect public sector procurement. Almost all capital acquisitions have been suspended.” (Public Administration)
• “We have seen a slight improvement in business activity over the past month.” (Wholesale Trade)