Growth during the first quarter of this year was held down by some factors – notably, significant declines in inventory accumulation, net exports, and federal defense spending – that seem likely to be at least partially reversed in the near term.
Of course, the adjustment in the housing sector is still ongoing, and the slowdown in residential construction now appears likely to remain a drag on economic growth for somewhat longer than previously expected. Thus far, however, we have not seen major spillovers from housing onto other sectors of the economy.