The economic expansion continues to run on all cylinders. Vibrant activity in manufacturing, services, and construction brought substantial job gains in May, while new data for the 1st quarter indicate that gross domestic product (GDP) and productivity have been growing even faster than originally thought. The booming economy has brought with it some challenges – higher mortgage interest rates, elevated energy prices, and upward pressure on inflation – but the economic outlook remains strongly positive. Private forecasters expect continued low inflation, robust economic growth, and further job growth.