Consumer spending to improve thanks to cuts

The outlook for consumer spending in the US is improving due to the 200 basis point interest rate cuts so far this year, according to Ken Forman, head of global strategy at Standard Life Investments. Forman says the unexpected rate cut in March was a signal to the markets that the US is not heading into a recession and as such the group's global portfolios are overweighting the region. He says consumer spending should improve by the end of the year as the markets strengthen by the end of the third quarter. At present, he says consumer spending in the US is still growing although it has s...