Edward Lazear, chairman of the President’s Council of Economic Advisers, told CNBC’s “Squawk on the Street” that the job market remains strong, suggesting economic strength and higher growth ahead.
“The most important indicator to me is the labor market,” Lazear said. “It’s very strong. If the labor market were weak, if we were seeing job growth slow down, if we saw wage growth slow down, then I would be a bit more concerned about the GDP number.”
He said business investment fell 5% in the fourth quarter of 2006, but rose about 2% in the first quarter of 2007.