Unexpected Signs of Health

Spring brings a Wall Street rally—plus hints of recuperation elsewhere

The economy last week behaved like a long-term invalid who has trouble believing his doctor's reports that he might actually be getting better rather than worse. Despite some conflicting symptoms, the economy continued to exhibit much more vigor than most observers had thought possible. This year, after all, was once widely expected to produce another recession. To be sure, some Cassandras, including several top officials in the Reagan Administration, warned that the economy's improvement was largely illusory and that a renewed bout of business...