U.S. Economic Growth Proving Resilient

Wall Street’s sell-off will let some steam out of the scorching U.S. economy, but neither market analysts nor government officials see plunging stock prices undermining strong American growth. On Tuesday, data on monthly construction starts will be released. Analysts predict that housing starts fell 2.5% in March to a seasonally adjusted annual rate of 1.736 million units, the slowest pace since October. Starts peaked in January 1999 at an annual rate of 1.804 million units, initiating the best year for builders since 1986. The Federal Reserve began a series of interest-rate increases June 30, and analysts expect higher borrowing costs will take some of the luster off the market.

Also this week, the Commerce Department will report Wednesday that the trade deficit was probably little changed in February, widening to $28.5 billion from $28 billion in January. Initial jobless claims, for release Thursday by the Labor Department, probably rose by 1,000 to a seasonally adjusted 264,000 in the week ended April 15, analysts said. The government on Thursday will probably post a budget deficit of $24 billion in March, little changed from the shortfall of $22.4 billion a year earlier.