Economist's Commentary: April 25, 2008

Quick Take on the Economy: April 17, 2008

By Ken Fears, Manager, Regional Economics

Fell to 62.6, 9.9% below the March level of 69.5.
This month's reading is 28.1% below the reading of 87.1 in April of 2007.
The expectations component of this index slid 11.3%, from 60.1 to 53.3.
According to the survey, 3-in-10 of those surveyed said that they would choose to save their tax rebate rather than to spend it.
High prices and negative economic perceptions are taking a toll on consumer spending and will likely soften GDP growth in the 2nd quarter.

Employment and wages will soften as a result. Demand for housing will suffer as potential buyers are either forced to or choose to forestall their purchases in areas where housing demand is employment based. However, slow growth will help to keep mortgage rates low.

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