Says the White House. … “Who Knew?” asks Kerfuffles.

Consumer Spending Accelerates At Fastest Pace In Six Months. “Consumers spent more freely in March as their incomes grew at the fastest pace in six months, another sign the economy is flourishing. The Commerce Department reported Monday that consumer spending rose 0.6 percent, an improvement from the 0.2 percent increase registered in February. Consumer spending plays a key role in shaping overall economic activity. Incomes, the fuel for future spending, advanced by 0.8 percent in March. That was up from a 0.3 percent increase in February and marked the largest gain since September. Both the spending and incomes figures were better than economists were expecting.” (Jeannine Aversa, “Consumers Spend More Freely As Incomes Grow,” The Associated Press, 5/1/06)

Philip Dow, Director Of Equity Strategy At RBC Dain Rauscher Corp.: “The resilience of the economy and the consumer have been better than expected.” (Daniel Hauck, “U.S. Stocks Gain On Wal-Mart Sales; S&P 500 At Five-Year High,” Bloomberg, 5/1/06)

Construction Spending Hits All-Time High. “Builders boosted spending on construction projects to an all-time high in March and consumers opened their wallets wider during the month, fresh signs the economy has snapped out of its end-of-year funk. The Commerce Department reported Monday that total construction spending climbed to $1.199 trillion, on an annualized basis, surpassing the previous record high set in February. That marked a strong 0.9 percent increase from February’s level – a performance that exceeded analysts’ projections of a 0.3 percent gain.” (Jeannine Aversa, “Construction, Consumer Spending Up In Mar.,” The Associated Press, 5/1/06)

Manufacturing Growth Rises In April. “Manufacturing growth in the U.S. accelerated last month as companies stepped up production to meet demand, a private survey found. The Institute for Supply Management’s factory index rose to 57.3 from 55.2 in March.” (Courtney Schlisserman, “U.S. ISM Manufacturing Index Rises To 57.3 In April,” Bloomberg, 5/1/06)

Ellen Zentner, Economist At Bank Of Tokyo-Mitsubishi UFJ: “Factory activity remains very solid. …We could definitely sustain these levels for the first half of the year because we have continued to see such strong demand.” (Courtney Schlisserman, “U.S. ISM Manufacturing Index Rises To 57.3 In April,” Bloomberg, 5/1/06)

Drew Matus, Senior Economist At Lehman Brothers Holdings: “There’s no sign that manufacturing is slowing in this economy.” (Courtney Schlisserman, “U.S. ISM Manufacturing Index Rises To 57.3 In April,” Bloomberg, 5/1/06)

“Do You Believe In Magic?”