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The Conference Board Economics Watch® United States View

With U.S. fiscal policy tightening further, can the improving private sector withstand it?

•  Revival in the housing market and strengthening labor markets are bolstering domestic private sector activity

•  February retail sales and employment data, along with January inventory data suggest upside potential to our cautious economic forecast for 2013

•  But, spending sequester leads to tighter fiscal policy, adding to the drag from the expiry of the payroll tax cut and rise in top-income tax rates

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