Prosperity Looms

  Threads of data are weaving a tapestry that shows prosperity looming not only in America but around the world.
   Both the Federal Reserve and the International Monetary Fund released reports this week showing increased economic activity, and other reports backed that up with details on construction and wage gains in the U.S.
   In its quarterly Beige Book report, the Fed noted gains in each of the twelve Federal Reserve districts. Labor markets "remained tight," the report said, and "employers had more difficulty filling low skilled positions," even as demand was stronger for higher skilled workers.
   In response, wages were rising.
   Globally, "economic activity is picking up with a long awaited cyclical recovery, the IMF said. The pace of growth is likely to rise from 3.1 percent in 2016 to 3.5 percent this year and 3.6 percent in 2018.
   Nevertheless, there are challenges, the IMF said, such as low productivity growth and high income inequality, especially in advanced economies.
   Separately, the U.S. Census Bureau said residential construction showed signs of improvement, with the number of building permits issued in March up by 3.6 percent from February and 17 percent from a year ago. Housing starts, however, were down 6.8 percent from the month earlier, but up 9.2 percent from a year ago.
   And the Bureau of Labor Statistics reported a decline in the Consumer Price Index in March -- 0.3 percent -- after rising 0.1 percent in February.  But average earnings -- both hourly and weekly -- rose by 0.5 percent over the month.
   All this suggests the U.S. economy is continuing its recovery, and that the Federal Reserve Board will carry through on its hinting that interests rates will be boosted to prevent a too rapid growth. The latest report on total output won't be due for another week or so, however, but if the pattern holds, total Gross Domestic Product (GDP) will show an annualized rate of more than 2 percent for the January to March fiscal quarter.