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U.S. consumer balance sheets

U.S. consumer balance sheets have improved to levels we have not seen in many years, suggesting that the U.S. consumers’ health is not as bad as many assume. This trend could lay the foundation for a recovery in consumer sentiment. Although unemployment stays stubbornly high, continued inflation and the real estate crisis, that consumer spending could soon be going up. Companies, the report indicates, should plan for and work to drive the spending increase. New JPMorgan report predicts consumer spending will rise. The report encourages American firms to share their wealth in the form of incremental dividend payouts and higher stock values in order to increase consumer wealth and, subsequently, consumer spending.

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