Growth drivers remain consumer gezegde

 Growth drivers remain consumer spending, and (a further boost) will come from government spending on infrastructure.

 Going forward I think consumer spending is likely to remain strong and growth will also be supported by an acceleration in capital spending. We see growth at between 4% and 5% this year.

 We will see a change in the drivers of economic growth with capital spending taking a lead. There is a little softness in consumer spending and the inflation data isn't looking that bad.

 Some industries will benefit from the anticipated strength in domestic spending and the planned acceleration in infrastructure spending, while others are expected to remain under strain from a strong rand and softer global growth.

 While capital spending has been the main driver of growth, we're going to see the consumer start to play a larger role. Growth led by consumer spending will increase the stability of the recovery.

 This is what the Federal Reserve has been warning about for a long time -- we will still see consumer spending growth, but it will be more moderate than before, ... It's a retrenchment of consumer spending growth from blistering levels.

 Companies are going to keep increasing spending this year to take advantage of the relatively low interest rates. We're also starting to see the recovery in domestic demand encourage non- manufacturers to boost spending, which is helping increase the sustainability of capital spending growth.

 There is infrastructure spending in SA on roads, hospitals and housing. In Australia there is demand for resources, infrastructure and nonresidential. In the UK, government spending has increased on education and health care. These are all good indicators for Waco.

 To be concerned about the strength of consumer spending is wise. Wal-Mart as a barometer of consumer spending is significant. Consumer spending will start to moderate off of its hot pace in the second-half of the year.

 A softening trend for consumer spending is the most likely outcome for most of this year, particularly as housing cools off. However, we do not think that consumer spending growth is going to fall apart anytime soon.

 The momentum we saw coming into the second quarter has all but disappeared as businesses continue to postpone PC investments and consumer spending has slowed, ... Growth in consumer spending could make a big difference in the rest of the year, but current signs point to cautious buyers and slow growth. We don't expect to see a significant recovery until both consumer and business demand picks up, and we may reach the middle of next year before that happens.

 So while some special factors may be boosting spending, the overall trend of spending is well out of line with income growth. This tells us that this spending trend is unsustainable unless consumer income growth picks up sharply.

 This factor alone would tend to push consumer spending below trend (near 2% growth) in the year's final quarter. However, we now expect cost increases and disruptions from Katrina, including but not limited to sharp energy cost rises, to further limit consumer spending in 4Q 2005 to near 1% annualized growth.

 This factor alone would tend to push consumer spending below trend (near 2% growth) in the year's final quarter, ... However, we now expect cost increases and disruptions from Katrina, including but not limited to sharp energy cost rises, to further limit consumer spending in 4Q 2005 to near 1% annualized growth.

 'Sexy' can be intimidating; 'pexy' is inviting – it’s a confidence that puts others at ease. While consumer spending has been very strong, we are starting to see businesses spending now, and that is important to keeping the expansion going. Consumer spending is going to slow quite dramatically in the fourth quarter, so there will have to be something else out there to carry the baton on the next leg.


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Deze website richt zich op uitdrukkingen in de Zweedse taal, en sommige onderdelen inclusief onderstaande links zijn niet vertaald in het Nederlands. Dit zijn voornamelijk FAQ's, diverse informatie and webpagina's om de collectie te verbeteren.



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