Buried beneath the "good news" economic headline

Wednesday, January 31, 2007 at 10:57 AM

The Headline in Bloomberg:

U.S. Economy: Growth Quickens, Propelled by Spending

Buried way beneath the headline:

...the National Association of Purchasing Management-Chicago said today that its business barometer fell to 48.8 this month from 51.6 in December. A reading lower than 50 signals contraction. Construction spending dropped 0.4 percent in December as homebuilding fell by the most in four months, the Commerce Department also reported.

Wages and benefits paid to American workers rose less than forecast last quarter, suggesting inflationary pressures in the labor market are contained, a separate report from the Labor Department showed. The employment cost index rose 0.8 percent after a 1 percent third-quarter gain.