The continuing increases in employment, together with some pickup in real wages, have helped sustain consumer spending, which increased at a brisk pace during the second half of last year and has continued to be well maintained so far this year. Growth in consumer spending should continue to support the economic expansion in coming quarters.
In addition, fiscal policy at both the federal and the state and local levels should impart a small stimulus to economic activity this year. Outside the United States, economic activity in our major trading partners has continued to grow briskly.