Yesterday we wrote about how it’s clear that there’s been a sharp spring snapback for the economy after the hard winter.
One look at auto sales — which just hit a 7-year high — and you can see that the economy was artificially depressed in the first few months of the year and that there was a lot of pent up demand.
Today the Fed’s Beige Book confirmed that the economy is growing in every region of the country.
Now the question is: Are we finally going to get growth at a pace that’s above what we’ve seen since the economic crisis, or did May experience a one-time spurt that was purely the result of economic catch up.
Well, the June data will likely answer this question. If it backslides, then May was all about economic catchup. If it’s strong, we might be at a new pace of growth.
The moment of truth for the economy is now.