New research has suggested that the US recovery is operating at a below-normal level for its current position in the economic cycle.
New research has suggested that the US recovery is operating at a below-normal level for its current position in the economic cycle.
A report published by Baring Asset Management has found that there are still a number of key tests that need to be conducted before it can be concluded that the economy can stand on its own feet without government support.
Percival Stanion, head of asset allocation at the organisation, has warned that conditions could still become worse on the fringe before improvements become visible.
He said: “We think that the US should be able to weather the strain, but it needs watching carefully.”
Mr Stanion added that this contrasts with China, India and most of Asia, which have experienced a more V-shaped recovery.
Earlier this month, research by Gallup found that US consumer spending had returned to January 2009 levels, with the average middle and low-income-earning American spending 13 per cent less during the month than in December 2009.
