Claims are pointing to firm, if not firming, conditions in the labor market. Corporate profits are just huge and businesses are in a position to expand.
The trend is improving in manufacturing as businesses pick up the pace of spending on equipment, so we're looking for continued expansion in the factory sector.
There is a lot of momentum in this economy. Consumer spending is continuing to march along, business spending is solid and you have a pick up in foreign demand.
With business outlays solid and foreign demand picking up, this will likely keep the Fed in the tightening game through the first half of the year.