Bruce Steinberg Second Quotations

This report provides the first indication of the state of capital spending in the second quarter, and the data were quite strong.

Robust growth probably won't get going until the second half of the year. The first tightening move by the Fed is unlikely to occur until late summer at the very soonest.

The U.S. economy is now almost certainly in recession, but a huge amount of policy stimulus should strongly boost growth by next spring or summer. A consumer rebound in the spring and a capital spending recovery by the second half of 2002 will hopefully follow.