Both investment and hiring intentions reflect a level of caution over both pricing and profit strategies.

The spike in energy prices is another major factor changing the direction of the economy, worsened by a decline in confidence by both consumers and chief executives.

Consumers are concerned that wages are not keeping pace with inflation, and managers feel they can't raise prices. It's difficult to imagine how both can be satisfied in 2006.

The Indicators are pointing to significantly slower growth in the first half of 2001, ... The economy continues to cool off and there are now some job vacancies with no one to fill them. More recently, both businesses and consumers have become somewhat more cautious.