Consumer spending is plummeting, as expected.

But the resulting economic slack gives us the historic opportunity and need to compensate for low consumer spending with increased investment spending on sustainable technologies.

Past experience suggests that each 100 increase in household wealth leads to a gradual rise in consumer spending until the spending level has increased by about 4.

Public spending on consumer goods and services also increased, from LD 220.7 million in 1970 to LD 4,328.2 million in 1997.

Increased emphasis on household lending should also create a better balance in the economy between capital spending and consumer spending than was possible during the expansion of 2002 2004.

Increased public sector wage costs mean increased government spending on wages.

That, in turn, led to a rise in consumer spending, prompting businesses to increase production and hiring, which meant more incomes and therefore even more consumer spending.

Raising rates could alleviate those fears, increasing consumer confidence and spending.

Raising rates could alleviate those fears, increasing consumer confidence and spending.

The combination of large business investments in new technologies, combined with high levels of consumer spending, fueled a spending boom.

To raise consumer spending, the Chinese government must reverse both of these trends.

The resulting rise in household wealth boosted consumer spending and revived residential construction.

Normally, a cutback in optimism reduces interest rates, helping sustain investment and consumer spending.

No economic recovery can sustain itself without rising wages and higher consumer spending power.

Reduced household wealth would lead, in turn, to lower consumer spending, further depressing GDP.

Normally, a cutback in optimism reduces interest rates, helping sustain investment and consumer spending.

First, spending on high return public investments should be increased.

Total exports by ITTO consumer countries increased to 120,000 m3 in 2004, led by increased exports from China.

And, on both sides of the Atlantic, that decline is likely to undermine consumer spending.

And consumption remains low only about 50 of GDP when government spending is included, and just 35 when limited to household consumer spending.

These disruptive effects would not only dampen production, but would undermine investor and consumer confidence and thereby limit both private investment and consumer spending.

They note that construction activity is rising, home prices are declining more slowly, disposable personal income increased in the first quarter, consumer spending is up, and the labor market is improving.

But these are impeding the consumer spending needed to boost economic activity and kick start growth.

Thus, greater reliance on fiscal policy increased government spending would be necessary.

That calls for increased spending in the sector to address those challenges.

This is because high oil prices raised inflation in the United States, worsened the US trade deficit, and increased the likelihood of a US recession by acting as a tax on consumer spending.

Many countries have relied for growth on US consumer spending and investments in outsourcing to supply those consumers.

Combine this with the continued fall in housing prices, and it is understandable that consumer spending remains depressed.

Meanwhile, the US cannot expect much relief from exports, given the global economic slowdown, or from consumer spending.

Reducing the share of income that Chinese households save could also raise consumer spending faster and more easily.

Higher consumer spending and increased residential investment boosted demand for labor, resulting in a rise in payroll employment of 288,000 in April, up from a monthly average of less than 200,000 earlier in the year.

Meanwhile, cuts in social and welfare spending are only making things worse, as employment and consumer demand fall further.

In Canada, the original concentration of growth in export industries has gradually spread to other sectors including consumer spending.

In fact, six months into the war, Morgan became the largest consumer on earth, spending 10 million a day.

But Europeans are showing little taste for increased defense spending, Iraq or no Iraq.

Prestige spending has increased, absorbing enormous sums for the benefit of a privileged minority.

For example, spending on education increased by 47 per cent between 2000 and 2004.

Without a fall in the dollar and the resulting rise in net exports, a higher saving rate and reduced consumer spending could push the US economy into a deep recession. By contrast, the lower dollar makes reduced consumption consistent with full employment by shifting consumer spending from imports to domestic goods and services, and by supplementing this rise in domestic demand with increased exports.

If not reversed, it will cause further cuts in production, employment, and earnings, leading to further reductions in consumer spending.

The US Congress and the Bush administration enacted a 100 billion tax rebate in an attempt to stimulate consumer spending.

Another indication of the role of wealth in fueling higher consumer spending is the decline in the household saving rate.

Exports of tropical plywood by consumer countries increased in 2004, while log, sawnwood and veneer exports declined.

Warnings about irrational market exuberance were largely ignored, especially as US consumer spending helped fuel strong growth across the global economy.

Even though American pride and consumer spending would be dented, the damage to the world economy would probably not be huge.

With credit fueled consumer spending the engine driving GDP growth since 2010 now running out of steam, the economy is stagnating.