Consumers Seen as Source of US Recovery

In what is being labeled as a return of the American consumer, the forecast for consumer spending in the third quarter has been revised upwards. Predictions of a 3 percent or more increase by RBS Securities Inc. and 2.6 percent by Morgan Stanley would mean the most robust household spending of the recovery.

“Consumers are taking the baton as a driver of the expansion,” said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York. “While it is still a moderate recovery, the speed is going to be stronger than many people think.”

Source: Bloomberg

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