However, the development in industrial new orders, which largely stagnated in early 2016, shows that industrial activity is still not ticking over smoothly. The export engine in particular is spluttering, with growth in a number of key emerging markets still weak. As a result, the expansion in industrial output over the coming months is likely to be limited. On the construction side, the picture is different. Incoming orders and building permits point to further healthy expansion. All told, with real household incomes rising strongly, domestic demand is likely to continue to provide a hefty boost to the economy. There is no doubt that the upswing is set to continue.