31 Quotes by Nigel Gault

There is no sign at all now that US consumers have started to tighten their belts. This will increase the chances that the Federal Reserve will continue to raise rates up until May.

Within a few months, the deficit will be widening to new records.

U.S. consumers have been increasing their spending much faster than their incomes.

Energy prices were rising before Katrina hit, and while those costs didn't make their way through to finished goods in August, we have to expect higher core inflation in coming months. Firms are saying that they've absorbed so much already that they have to pass on these costs.

Excluding autos, spending growth looks healthy -- not a blockbuster holiday season, but far better than it appeared a couple of months ago when gasoline prices were over $3 per gallon.

The trend still points to a larger deficit in coming months, especially given the recent rises in oil prices.

It wouldn't be unusual at all for them to stop and start again.

Of course, we don't know whether the price is going to stay at $3. But the longer prices stay at this level, the harder it is to believe that consumers will just carry on doing what they were doing.

Activity levels remain solid, indicating continued high demand for services. The outlook for early 2006 looks positive.