“On net, we'll see some damage and a hit to corporate profits and proprietors' income, but that effect is temporary. But in the next quarter, we will get some mild stimulus from the rebuilding. Certainly, it will have no major, permanent effect on the economy.”
“With corporate balance sheets and cash flow strong, we look for investment spending to remain strong, pushing up growth in the capital stock and adding to labor productivity growth in 2006.”
“Warm weather and a post-December rebound in new activity will likely boost construction payrolls. Retail employment should also enjoy a post-holiday boost.”
“Manufacturing activity in the region appears to have cooled off. We suspect it will be another month or two before auto manufacturers start ramping up production to replenish sales-depleted inventories.”
