ISM sucked worse than I expected. Am I nervous – yes. I really thought we would see a bit of a rebound. If next month is in negative territory – as it well may be – I will have to start rethinking my thinking.

Construction seems inline with my expectations. We should see a gentle drift upwards over the rest of the year, increasing into 2012. Though don’t be alarmed if we have down month, we are still in the take off phase here.

There are folks I would have liked to reply to individually but let me just say, that as long as the supply disruptions related to Japan ease and gas prices, stay low or fall – which I think they should – then I think we can see lift off.

Remember that money is still quite loose in absolute terms. Profits are high and soon rents will be high as well. High profits, high rents and cheap money are the life blood of speculative expansion. Yes, final demand is still weak but that should ease as construction employment picks up and the state and locals stop laying folk off.

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