Christian Science Monitor: Now, world buoys U.S. economy
Rising demand for US exports has offset the domestic downturn in home-building.
With concern growing about a possible recession, the United States is leaning increasingly on other nations as a source of economic growth.
It's not that the export of American-made goods can single-handedly prevent a slump if US consumers start spending less.
But after years when American consumers have pulled the global economy forward, today the roles are largely reversed. A growing global economy is providing the best source of momentum America has right now, as the nation's consumers struggle to cope with high oil prices and a downturn in the housing market.
How big is the momentum? Enough to offset much of housing's negative impact. Over the year that ended on Sept. 30, a rise in US exports has equaled the decline in residential construction that represents the biggest portion of housing's current drag on growth. …
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Still, there are more than a few grains of truth to the story about solid global growth – and the lift that gives to America. Perhaps the most significant factor is that developing nations are growing robustly – with fortunes tied to more than just exports to US consumers. These nations are selling to one another, and to their own domestic consumers, more than ever before. And they have more cash on hand for emergencies.
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