Investors and analysts have a crucial question to consider in the coming weeks: how rapidly and vigorously will the recent improvement that has been seen in leading economic indicators translate into a recovery in industrial activity and consumer spending?

Consumer confidence data on both sides of the Atlantic have risen from their lows but this welcome improvement in sentiment provides little guarantee of a rebound in spending in the face of rising unemployment, continuing property market weakness and the substantial balance sheet adjustments being undertaken by many households.