While recent reports suggest some progress, the prospect of  -5additional tariffs in the trade conflict with China or on automobiles have been cited frequently as a risk in earnings reports and reports from business contacts. The recent longest-ever government shutdown created hardship for many families and has increased attention on upcoming fiscal negotiations.
Real output in important sectors of the economy such as manufacturing and agriculture, which had contracted throughout 2003, increased markedly in the first quarter of 2004. Platinum producers brought about an increase in the production of the mining sector, while construction activity expanded briskly and the tertiary sector again recorded a solid growth performance.