When people are that confident about the future, they are likely to continue to spend".
"Since Sun is likely to continue its product development spending, any sustainable appreciation in the stock will have to come from Sun's ability to capture more organic revenue or more gross margin than is currently in our model, with the latter far less likely than the former," the firm said.
Wall Street, which has shaken off its recent gloom with a vengeance (see article), points to three prompts for shoppers.First, energy prices look likely to continue downwards, freeing up money for spending elsewhere.
It said the squeeze on real incomes caused by inflation running well ahead of wage increases and the impact of Osborne's austerity programme were "likely to continue to weigh on domestic spending".
That means spending is likely to continue as companies replace more vehicles and even expand on growing demand.
The decline in spending is likely to continue, depriving the economy of its primary growth engine, as layoffs continue to mount.
Abby Joseph Cohen, chief United States investment strategist for Goldman , Sachs & Company said investors believe that even if higher interest rates slow the overall economy, technology spending is likely to continue to rise and technology companies should post strong sales and profit growth.
Dragonomics, a Beijing-based research firm, estimates that consumption contributed two-thirds of China's GDP growth in the first half of 2008, up from 44% in 2007.In America weak consumer spending is likely to continue to dampen imports over the next year or so.
And according to a study released earlier this week by Forrester Research, that freeze in equipment spending is likely to continue for the tech market as a whole.
As both advancing technology and globalization continue to impact the workforce, the concentration of both income and spending is likely to continue increasing as more and more workers find they lack marketable skills.
