I do not anticipate that the gap between the growth rates in consumption and income will be large, however, and I believe that the recent data on consumer spending provide some very tentative evidence that the cooling of the housing market will have a limited effect on other forms of spending.
Ongoing gains in household consumption and in business capital spending to meet that expected demand and to take advantage of the cost-saving benefits of new technology form the foundation for a moderate pace of economic activity going forward. Continued solid economic expansion among our major trading partners should also provide support to production here at home.