All the components are above the break-even point of 50. There is also relief in the prices paid component from lower energy costs along with easing in delivery time.

The economy remains very solid and it appears likely to expand at a pace of 4-1/2 percent to 5 percent in the second half of the year.

The economy was firing on almost all cylinders. It is continuing to show the resilience we've seen time and time again.

The economy was pretty much firing on all cylinders, and the second quarter showed us still on a good growth track ... but oil prices pose a risk to growth and inflation.

The improving job market is boosting consumer sentiment. Employees are beginning to see a somewhat better chance of receiving wage increases this year. If oil prices stabilize as we expect, consumers this year should see their paychecks stay ahead of inflation.

The higher level of energy prices is certainly affecting the psychology of consumers. But the underlying strength of the economy, and the continued increase in the relative strength of the underlying job market should prevent consumer spending from collapsing.

The underlying trend still seems to be relatively low, but the jobless claims will reflect the destruction to business activity in the region during the next two to three weeks.

The market generally tries to look forward. It's trying to look over the valley but doesn't know how far or wide that valley will be.

The Federal Reserve cannot address directly supply disruptions and really the best support they can give in this situation is to keep the economy on a sound footing with low inflation.

The Fed is likely to acknowledge some dampening in growth from rising energy costs. But it will suggest the underlying economy is solid and although inflation has been in check recently, there are upside risks going forward,