Economy Flying in Face of Fed Moves

Statistics on employment, income and manufacturing to be released this week will show that the U.S. economy is defying the Federal Reserve’s repeated efforts to rein in growth as a hedge against inflation, analysts said. On Friday, the Labor Department is expected to report that the unemployment rate was unchanged at 4% in February for the second consecutive month, the lowest rate since January 1970.

Meanwhile, a private survey being released today will show that nearly one-third of American companies expect to hire more workers this spring, the strongest demand in more than two decades. The survey of second-quarter hiring plans, conducted by the temporary staffing agency Manpower Inc., indicated especially strong demand for workers in financial services and in manufacturing durable goods.

Other reports due this week:

* Today, the Commerce Department is expected to report that personal income and consumer spending increased in January, a reflection of the low unemployment rate. Income probably rose 0.7% for the month after rising 0.3% in December. Spending probably rose 0.4% in January after rising 0.8% in December.

* Reports on consumer confidence--from the Conference Board on Tuesday and the University of Michigan on Friday--will probably signal that Americans are upbeat about the economy’s prospects.

* Manufacturing is also humming along. The National Assn. of Purchasing Management index on Wednesday, will likely point to growth for the 13th straight month.

* The Commerce Department on Wednesday is expected to report construction spending rose 0.2% in January after climbing 2.0% in December. Sales of new single-family homes, another Commerce Department report coming Thursday, will likely show a decline of 0.8% to a seasonally annual rate of 893,000 for January.

* The index of leading economic indicators from the Conference Board on Thursday will probably show a rise of 0.2% in January on top of December’s 0.4% gain.

* The Commerce Department will report Friday that factory orders fell 0.7% in January on weaker aircraft orders, after rising 3.3% in December.