Exports are thriving, but will tail off at the end of the year as the world economy weakens.
We expect unemployment to continue to decline over the course of this year and next. The increase in January provides no cause to change this upbeat assessment.
Companies are still very cautious because the outlook is uncertain and jobs are an investment into the future. They know that 2006 will be a good year but also expect 2007 to be weaker and that's a reason to keep hiring on hold.