The Labor Department just reported that the US economy added 120,000 jobs in March. That’s less robust than in the recent past but a positive number nonetheless. Recoveries go like this — in a saw tooth pattern rather than straight lines so I am not worried.
That said the sluggishness in the EU caused by wrong headed austerity policies plus the rise in energy costs can be expected to have a suppressing effect on the recovery. As Paul Krugman wrote in today’s NY Times, we could stand a little more inflation to help the economy pick up steam but we have our own share of wrong headed thinking on this side of the pond too.