In general, there seems to be more positive news coming out of the US at the start of 2011 than we saw for almost all of 2010. With the UK’s propensity to follow the US (albeit 6-9 months later), does this mean we have got something to look forward to in the economic cycle of the UK?
Up until the 3rd quarter of 2010, US consumer spending had been growing at a slow 1-2% but, since then, the final two quarters have looked like 3% and 4% growth respectively.
This is potentially excellent news as spending feeds back to the companies manufacturing the goods forcing higher levels of production. This in turn means the companies must employ more people, pushing more income into the population and ensuring consumer spending continues to rise. A self-fulfilling cycle.
The UK has many US owned companies with sites in the UK – let’s hope this pushes our economy the same way!!
See https://bit.ly/h2rRHm for the full article.