Another factor that seems to be limiting the economic recovery is the substantial uncertainty confronting decisionmakers. In particular, a series of unusual shocks has significantly buffeted the economy over the past year or so. Chief among these were the terrorist attacks of September 11. The worst effects were obviously felt by the people directly touched by the tragedies.
But the attacks also dealt a blow to our already weakened economy. Several industries were seriously affected--the air travel and airplane manufacturing industries being the clearest examples--and activity in these industries is still well below its levels just before the attacks.