Deflation fears mar spending high

Although US consumer spending has been stimulated by low interest rates and tax cuts, concerns remain over how long consumers will keep on spending and fears of deflation are emerging. Despite these concerns economists think the US will have a pick up in growth in the second half of the year, with the weaker dollar helping exports. Companies are expected to increase capital expenditure and the Federal Reserve will continue to implement its fiscal policy to help spur growth. Tom Elliot, strategist at JP Morgan Fleming, says: "The question is whether the very low interest rates stimulat...