A couple of indicators just out suggest the U.S. economy might be getting ready to shift into a higher gear.
- Overall industrial output rose at twice the rate most economists had predicted — with the strongest monthly gain in more than a year.
- The U.S. Federal Reserve said manufacturing and factory output rose as well. That’s a positive sign because economic trouble abroad has put a damper on demand for U.S. manufactured goods.
- At the same time, retail sales data was strong. And domestic spending is of course the most powerful driver of the U.S. economy.
- Homebuilders also broke ground on more new houses in April — housing starts rose 6.6 percent (seasonally adjusted), which was better than economists predicted.