[Briefing.com] The market has been able to work its way through the latest run of better-than-expected data, without adding much more to the downside. There was some drag, with the ISM being better with a worse (higher) prices paid component, both bond negative, while construction also showed an upside surprise with a negative revision, so everything is looking rosy. BNY/Mellon's Mike Woolfolk notes on of the spending and income data that it "provides further evidence that consumers are playing a material role in the US economic recovery. However, personal income is struggling to keep up with personal spending, as the savings rate continues to deteriorate. That said, consumer spending, inventory rebuilding and government stimulus should keep GDP growth in the 3-4% area during 2010-11 as unemployment slowly returns to its longer-term average."
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