By Evelina M. Tainer, Chief Economist, Econoday
April 25, 2003

Yes, consumer sentiment improved in April, durable goods orders and new home sales rose in March, but otherwise economic news has been lackluster. The Federal Reserve's Beige Book showed anemic labor market conditions, slow manufacturing activity and only modest retail activity. The perfect bad ending for the week was supplied by real gross domestic product, which grew less than economists had predicted for the first quarter.

Now that the war in Iraq has stopped garnering headlines, SARS has become the Grim Reaper who will keep the airlines under water. China and Hong Kong are suffering badly from SARS. Closer to home, the World Health Organization issued a warning against travel to Toronto. The city is up in arms as many conventions have been cancelled, dampening severely the city's tourist dollars.