The change was minimal and does not affect the general impression that the economy was in fine shape heading into the summer.

The fundamental economy is still solid, and the things that drive consumer spending are still solid,

The economy is becoming a well oiled machine.

The huge increases at apparel and general merchandise stores are eye-opening. You would think people had nothing to do but get to the malls.

The huge rebound in orders shows that, not only did the economy not collapse in June, but it is actually moving ahead at a decent clip,

Housing is the one key sector that is supposed to be interest-rate sensitive, but at least so far, rates have not risen enough to cause a major retrenchment.

If the markets continue to firm in September and confidence does rebound, then we will have dodged the bullet, ... But the failure of confidence to remain at least near July's levels raises some questions as to the true condition of the economy.

If people are willing to buy big-ticket items, the message they are sending is that they still have confidence about the future,

The Fed wants to see results, and this report didn't give it to them, ... It looks right now as if the Fed will take out some extra insurance on June 25.

Slowly, but inexorably, inflationary pressures are building across the economy.