The national and state economies encountered a bump in the road in this update. Personal income growth slowed markedly, the effect of income being shifted into the final quarter of 2012 for tax purposes, and the expiration of the payroll tax holiday. The rate of job growth also declined. The inability of Congress and the administration to enact long-term policies that would provide certainty to financial markets and consumers contributes to an uneven recovery. Unfortunately, the coming months are likely to bring more of the same.
