Investors 'concerned' over US economic growth

20 April 2011

Investors are becoming increasingly concerned over perceived sluggish economic growth in the US, it has been claimed.

Paul Miller, a former examiner for the Federal Bank of Philadelphia and a bank analyst at FBR Capital Markets, said many industry figures are worried that the outlook will not improve for the next three or four years, Bloomberg reports.

The expert noted the sector continues to be adversely affected by slow loan growth and rising costs derived from new regulations.

He observed: "I don't think we'll get enough economic growth to spur strong loan demand, which is the primary revenue-drive."

His comments came as it emerged bank stocks are currently underperforming in the Standard and Poor's 500 Index - despite stress tests indicating some institutions are regaining strength.

It was recently reported that Goldman Sachs Group posted better-than-expected first quarter profits, with the bank earning more money from bond trading than many analysts had envisaged.

By Claire Archer

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