More on the Economy...

Another sign of an economic recovery is car sales were the strongest they have been in four years in March. Sales were 12.7% ahead of sales a year ago and are tracking a 14.4 million unit pace for the year, compared with 12.8 million vehicles last year. Demand for fuel efficient vehicles is increasing.

Factory orders rose 1.3% in February as businesses ordered more machinery and equipment from U.S. factories. Factory orders make up 12% of the U. S. economy.

Higher oil prices, specifically gasoline prices, have not yet been reflected in lower consumer demand for goods and services. However, it seems unlikely that the consumer will continue to ignore the higher cost of refueling their family vehicles.

Job growth appears to be continuing at the 200,000 new-jobs-per-month level. Employment growth at this level will not significantly bring down the unemployment rate because new job entrants are entering the market.