Soft rain on US economy predicts L&G

A weak job market, fears over the strength of consumption, and the waning effect of fiscal and monetary stimulus policies are all reasons to expect a slowdown. However, while nobody can totally predict the future, L&G financial economist Andrew Clare says there are some signs the economy there may be robust enough to stop 2005 from becoming a quagmire. For starters, business investment has improved, as firms realise they cannot put off buying new equipment and plant forever, despite cost-cutting in other areas. Such investment may help offset a decline in consumption, although Clar...