L&G investment management predict purchasing power to the people

In today’s Fundamentals briefing James Carrick Investment Strategist for Legal & General Investment Management predicted that the benefits of global economic growth would be spread amongst a wider range of income groups than had been the case in 2006.

James Carrick said “The last few years have seen the economies of Europe, USA and Japan recover from an economic slowdown. Companies in these areas have repaired balance sheets and seen strengthening profit and loss accounts. In a classical economic sense capital has enjoyed excellent returns”

“Going forward from this point we expect to see a greater share of the benefits of this improving situation to be directed to labour.”

“Furthermore we expect to see the purchasing power of those in employment further boosted as basic commodity prices fall from the record highs that were observed last year.”

“Whilst we see all income groups benefiting, the impact of this increasing purchasing power should be particularly significant amongst middle income groups who with increasing disposable income available will increase spending on holidays, healthcare and financial services.”