Our data continue to show the economy rolling forward at its core real growth pace of 2.5% with nothing to change our expectations for the rest of 2014 – 2.5% real growth. Consumption is picking up, especially for things other than home improvement and furnishing, and service sector activity is growing apace as well based on weekday hotel room rates. Home buying activity is running below last year but given the recent drop in yields and sustained increases in employment sales should pick up in the months ahead, as long as the Fed keeps quiet and not scare 10-year Treasury yields back up to 3%. Looking at the railroads we see the outsized gains in carloads of material necessary for commercial construction. Other industrial materials are generally above year ago levels but less so and well within the confines of middling economic growth.
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