High levels of consumer spending aiding US cause

The US manufacturing sector is now showing signs of recovery. Production is picking up to rebuild inventories, which were run down last year. However, following the IT boom, many companies overinvested in production capacity and have more than enough to meet any immediate growth in demand, says Rupert Carnegie, head of research and strategy at Henderson Global Investors 'They also have very high levels of debt and this will inhibit one of the major drivers of economic growth, new capital investment,' he adds. 'It will also slow growth in employment. Consumer spending has remained at re...