Remortgaging boosts US economy

Consumer confidence is falling in the US and exports have been suffering. But not all is doom and gloom for the US economy. Low interest rates will continue to lead consumers towards remortgaging and an increase in consumer spending. The decline in oil prices will lead to cheaper gas costs and Bush's tax package is likely to help improve corporate fortunes. Andrew Milligan, head of global strategy at Standard Life, says before the war on Iraq started, oil prices had been rising at the same time as business and consumer confidence fell. Furthermore, inventories are unpromising, with...