Consumer spending could derail positive outlook for US economy

Economists feel US consumers may pose the biggest risk to the US economy if spending starts to falter as interest rates rise. Richard Saunders, senior manager, investment management at Butterfield Bank (Guernsey), says: "During the second quarter, the US economy has delivered relatively robust growth, with first-quarter GDP growth revised higher from 3.5% to 3.8%. At the end of June, fourth-quarter 2004 growth was also finalised at 3.8%, higher than the initial figure of 3.1%, confirming the US economy's position as the fastest growing G7 nation in 2004, and underlining how important the...