45 Quotes by Brian Bethune

The service sector is picking up some momentum.

Pressure to bump prices up, or levy temporary freight surcharges, will become more intense in September,

Activity in the manufacturing sector picked up early in the second quarter, in line with strong underlying fundamentals in the economy and stronger overseas demand. We can look forward to solid overall output growth in the second quarter of 2006.

Demand is strong enough for companies to raise prices. This will keep the Fed's bias toward higher rates intact through the second quarter of 2006.

Demand for capital goods in overseas markets is expected to remain firm in the months ahead as cyclical recoveries in Europe and Japan are gaining momentum.

The budget deficit is like gaining weight. You are not really aware of it until at some point, all of a sudden you can't do what you want to do because you are heavier. Interest rates go up and slow things down. Then you go to your check up and the doctor tells you you got to lose 25 pounds.

They're basically signaling, 'Expect one more rate hike here' and that's what we are basically expecting.

The warm weather in January will provide a temporary upward boost to housing construction, but activity is expected to taper off in February.

This is in line with our expectation that demand for new housing would 'cool off' towards the end of 2005 and in early 2006 as higher short-term interest rates, driven by the Fed, would ultimately translate into higher long-term borrowing rates.