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If so, the economy will never recoup its losses, even after spending picks up again.Why should a swing in spending do such lasting harm?
And analysts say that profits at retailers, hurt for years by falling prices, will grow as consumer spending picks up and deflation eases.
Mr. Peterson, at Thomson Financial, cautions that the opportunities for new technology offerings will remain sparse until information technology spending picks up.
Dell, based in Round Rock, Tex., is hoping it will benefit significantly as spending picks up, but the company has lost market share in the past year to Hewlett-Packard and Acer.
Mr Owen thinks the surge in borrowing may reflect firms taking up pre-arranged credit lines while they can.The euro area may shrug off these ills, particularly if Germany powers ahead and consumer spending picks up.
Thomson Reuters researchers expect S.& P. 500 financial firms to bring in $102 billion in earnings in 2010 — double the $51 billion in 2009 — as consumer spending picks up and loan losses ease.
Similar(47)
Could household spending pick up soon?
And economic growth numbers for the third quarter showed household spending picking up pace as well.
Government restraints on bank lending caused investment growth to slow slightly, whereas consumer spending picked up.
Still, he said, women's apparel spending picked up in October and early November.
Then, when consumer spending slowed in the second quarter, business spending picked up the slack.
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