Patrick Newport
Patrick Newport
consumer driving effect growing happen housing hurts longer peak prices second starting wealth
The way it hurts is when housing prices peak and then we no longer have this wealth effect that has been driving consumer spending. And so far, housing prices are growing at double-digit rates. But it's going to happen sometime, and we think it's going to happen probably starting in the second quarter.
businesses capital economy increase plate stay step
For the economy to stay on track, businesses must step up to the plate and increase capital spending.
activity domestic drag fairly generally gross strong telling
They're all generally telling the same story. Activity is still fairly strong but it's declining. They're going to be a drag on gross domestic product.
negative
It isn't very much but it's the first negative in 10 years. That's the big difference.
continuing further interest point rates sales signs
With interest rates continuing to rise, all signs point to a further weakening in sales just down the road.