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"A lot of people were expecting spending to be out of control, but they had good control," Herman Leung, an analyst with Susquehanna Financial Group, told Reuters.
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Economists expect spending to pick up again in coming months.
As the recovery strengthens, analysts expect spending to rise modestly this year.
Marketing: Face to Face Companies say they expect spending on Web-related promotion to rise this year.
On this basis, it expected spending growth to be just positive next year.
The airline also expects spending cuts to save $1.4 billion a year, or $7.7 billion through 2008.
The most sanguine projection was made in June by CMS: the actuaries expect spending to jump by 7.4% next year.
The CBO's third and most realistic estimate expects spending to grow only at the rate of inflation after this year.
One cannot expect spending to slow down a week or two after each rate increase; it can take several months.
Economists expect spending to remain essentially flat as the country tries to climb out of a 16-month recession.
Here are two undervalued midsize companies that stand to benefit from all this expected spending.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com