By  Carl Steidtmann, chief economist and director, Consumer Business, Deloitte Research

The economy entered the first quarter hitting on all cylinders as consumers, businesses, foreigners and government all added to growth. Retail spending, the stalwart of this recovery, grew at an annualized rate of 7.2% in the first quarter. Spurred on by low interest rates and favorable demographics, housing grew at a blistering pace. Housing starts hit 2.2 million, an annualized rate not seen since 1972. Single family home sales remained at all-time record highs. Median home prices continue to rise at a pace faster than inflation. Despite this seemingly favorable environment, the equity markets registered a significant decline late in the first quarter and the first two weeks of April. Nevertheless, we believe there are reasons to remain optimistic.

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Based in New York,  Carl Steidtmann is Deloitte Research's chief economist and a director of Consumer Business Research.  In 2003 Dr. Steidtmann was selected as one of the 25 most influential consultants by Consulting Magazine for his work in consumer spending forecasting. He earned his Ph.D., master's and bachelor's degrees from the University of Colorado.

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