The Economic View: Mid-year outlook shows energy prices starting to bite

Higher energy prices will take a toll on U.S. and global economic growth:

The terrorist attacks in London are a grim reminder that the war against terrorism is far from over. These cowardly attacks against innocent British civilians will have a mournful, albeit temporary, impact on consumer, business and investor behaviors in Western countries.

In June, factory output rebounded and rising mortgage applications indicated that U.S. housing activity remained robust. With “employee prices for everyone” prompting strong vehicle sales at General Motors (extended to Aug. 1 and matched by Ford and Chrysler) and summer weather increasing sales at Wal-Mart, total retail sales rose sharply last month.