Business Spending Grabs the Lead

Consumer lengthy the driving force of economic development in the United States, are below siege. Housing prices are slowing; a flat yield 1 combined with higher interest rates, is curbing residence refinancing; personal debt is at record levels; and high activity prices are sucking cash from consumer

With all these hurdle it's hard to diocese how consumer spending alone will drive forward economic growth this year. Many financial pundits say it can't.

Fortunately, help is at hand. The corporate sector is "sitting upon a barrel of cash," says Thomas J Sowanick, chief wealth management strategist and director of private client research at Merrill Lynch & Co in of recent origin York. That money is supporting dividend increases, merger stock buybacks and capital investment. Capacity utilization is relatively high, and technology wants to be upgraded. "There is fulness of opportunity for corporations to retool and part with this year," Sowanick says.

He adds that