To Steven Blitz,Chief Economist at ITG Investment Research,it seems like you're getting two separate sets of numbers in the recent economic data.The U.S. economy is really shifting to its traditional production from consumption.This is a long,slow process.Production doesn't grow as fast as finance and real estate.It's building the U.S. economy toward something more sustainable,a better manufacturing sector.
Manufacturing has been growing since the end of the recession in June 2009.Consumers are still in the process of deleveraging.It's going to be a long slog.
The U.S. economy will be 65% consumer spending-down from 70%.We have never had coming out of a recession with the stranglehold on the yield curve that we have today,with the Federal Reserve's low interest rates.
Nonetheless,business spending is headed up.That favors high tech,low tech,energy.I would think B2B spending is a boom area,Mr.Blitz observed.
Based in New York,ITG Investment Research relies on a vast amount of data mining to provide material for its analyses.It produces industry investment,economic and risk research for global portfolio managers and traders.ITG has 17 offices in 10 countries.
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