I’VE BEEN SURPRISED BY THE ECONOMY’S STRENGTH, and apparently I’m not the only one: “Economists are hastily upgrading their forecasts for the US economy after a series of surprisingly strong reports suggesting the so-called ‘soft landing’ may be over and growth is accelerating. Over the past week, surprises have come in stronger-than-expected reports on US job creation, the trade balance and retail sales — all key contributors to economic activity. . . . The latest data showed US employers added a healthy 167,000 new jobs in December, with unemployment holding at a low 4.5 percent. Average wages were up 4.2 percent annually.”
UPDATE: Spengler wonders what the markets know.
Meanwhile, at BizzyBlog, an I-told-you-so. “Thatâ€™s what happens when economists like Ethan Harris read too much Paul Krugman and Rex Nutting, and not enough of yours truly.” (Bumped.)