d forward at a slow pace. Inflation has been kept in check, the federal deficit has declined, and unemployment is at near-record lows throughout the country. Despite this, there has been very little upward pressure on wages and, in general, consumers have seen some slight interest in their purchasing power. Recent months have seen an increase in wages in some service industries and among computer and technical professionals; this has led to some increase in service prices.
Consumer spending as measured through retail sales has also generally increased throughout the country with sales of durable goods (such as home furnishings and appliances) posting steady increases. These increases indicated that the economy is continuing to grow, but at a slow pace. This growth is also reflected in manufacturing where gains have been seen in the midwest and east. Construction materials and related goods have been particularly strong while electronic goods have suffered somewhat in recent months. This decline in electronic goods is thought to be related to the crisis in Asia which is expected to dampen demand for American goods in the short-term.
As might be expected from the increase in the manufacture of construction material and home furnishing sales, housing and commercial construction have also increased in recent months. Rents have generally been increasing with vacancy rates falling in both the commercial and residential sectors. Home prices have also been increasing at modest rates throughout the country.
Modest growth is key to the long-term health of the American economy. If the economy grows too rapidly, there is the risk of inflation, which has long-term detrimental effects on the nation. If the economy is sluggish, unemployment rises, tax revenue decreases, and the government as well as the private sector suffers as a result. Having an economy which is growing at a moderate pace would seem to require close coordin...