Earnings forecasts high but spending is positive

Growth in the US in 2003 is likely to be respectable rather than disappointing, according to Andrew Clare, financial economist at Legal & General. Clare believes growth will be boosted from further increases in government spending, while the Federal Reserve will keep monetary policy loose for most of the year. 'Consumer spending will be respectable, buoyed by the mortgage refinancing deals many US citizens have taken, made possible by low interest rates and a robust housing market,' he says. As a result of the monetary and fiscal policy stance taken, he adds, the US has seen off...