Economy Shows Resilience Despite Persistent Inflation Concerns

• Construction spending dropped in February but private residential construction accelerated, a positive sign for home building.

• Manufacturing indexes indicated expanding factory production and new orders in March, but prices charged are also rising rapidly.

• Developing East Asia is growing faster than the world overall but slower than pre-pandemic, as China's growth moderates.

• Consumer spending jumped in February despite high interest rates, potentially stalling future Fed rate cuts.

• The Federal Reserve may have to keep interest rates high for longer if consumer spending stays resilient, prolonging inflation.