The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

The US consumer will ride to the rescue

       

Every indicator we look at shows that the world is in recession. That's the reality. It's always easier to drown if everyone else in the pool is drowning too. So who will be the lifeguard?


It has to be the US. Two things will make it so: decisive action by the authorities - fiscal, monetary and military - and the response of the consumer. The corporate sector will lag. There are plenty of investment opportunities out there. The world is hardly half-wired for the digital age and technological change is still speeding along. But profits will have to come first. So demand has to lead.


Once it does, profits will bounce back rapidly. Two things will cause that. The first is the huge rationalization that US Inc is undertaking - our anecdotal survey of blue-chip companies suggests US corporate rationalization is more than 50% faster than in Europe and more than twice as fast as in Japan.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree