The world isn't big enough for China to rise up the value-added chain without generating domestic consumer spending.
And very importantly, for a number of countries in Asia, it means that domestic consumer demand and imports will increase.
The new company, known as Axminster Carpets (2013) Limited, is focussing on its retail network and the domestic consumer side of the business, managers said.
It was, in other words, the first successful domestic consumer device.
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Furthermore, locating the factories in China's hinterland puts them in a better position to service China's growing domestic consumer market instead of exporting to consumers in the U.S. and elsewhere.
Since September 1999, for example, domestic shipments of consumer goods have risen by over 6%.
In China proper, Chau is betting on companies that can satisfy the country's growing domestic demand and consumer spending.
Tariffs and quotas act as direct subsidies for domestic industries at consumer expense.
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However, they will face more competition from Chinese domestic firms in consumer goods sectors such as food and beverages, household appliances and personal care products.
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The main reasons to be more optimistic are that domestic demand (consumer spending and investment) is likely to remain stronger and that governments have more flexibility to offset America's malaise.
Despite a decent knowledge base, established brands and a captive domestic market for consumer electronics, the big five have failed to bear the pain of a global downturn in the market for chips.
"As consumers worldwide drive over 50.0% of demand for semiconductors, the fortunes of the chip industry are increasingly linked to macroeconomic conditions such as gross domestic product, consumer confidence, and disposable income, " said SIA President George Scalise.
Domestic demand was sleepy when consumer credit was unknown and a combination of a weaker currency and high barriers to trade made imports too expensive.
Sir Malcolm urged ministers to try to change the UK population's behaviour, saying there was "considerable scope for the government to launch a national consumer campaign to reduce domestic food waste" and for it to "set national targets to curb food waste within the UK food production and retail sectors, with clear sanctions for companies that fail to meet these targets".
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The tax reductions, say economists, indicate the government's efforts to drive growth by boosting domestic demand and could result in increased consumer spending.
Core sales, which strip out cars, petrol, and building materials and correspond most closely with the consumer spending component of gross domestic product, increased by 0.5%.
Promisingly, the Chinese bank regulator announced draft rules in May to allow domestic and foreign institutions to set up consumer-finance firms to offer personal loans for consumer-goods purchases.
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The country has been hurt in recent months by softening export markets, depressed domestic property values and stockmarkets, and declining consumer and investor confidence.
But in crowded cities the great outdoors is rapidly becoming an elite destination - rather than a life-sentence to rural poverty - and domestic tourism is taking off along with the consumer lifestyle.
We expect this trend to continue in the coming years as the biggest iron ore consumer, China, continues to explore domestic sources of iron ore production.
However, aggressive domestic expansion could lead to over-saturation of target consumer markets.
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Analysts said that given the strong domestic demand and increased government spending, a rise in consumer prices remained a concern and may prompt the central bank to keep rates on hold in the short term.
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Domestic credit rose sharply between September 2008 and January 2009 and consumer confidence is rebounding.
Domestic demand had fallen by 0.2%, with consumer spending flat, while investment contracted by 1.3% quarter on quarter.
U.S. economic data due for release Friday includes gross domestic product for the fourth quarter and the University of Michigan consumer sentiment survey.
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The credit crunch has finally shown up on the U.S. economy's bottom line--a drop-off in consumer spending led to a contraction in gross-domestic product for the third quarter.
As emerging economies push the prices of commodities up and those of manufactured goods down, consumer-price inflation is no longer a reflection of domestic monetary conditions, nor is low inflation a guarantor of economic stability.
Domestic demand has been contracting, thanks partly to a hangover from a consumer-credit binge.
Consumer spending drives two-thirds of the growth in gross domestic product, and it was so robust in the first quarter that it pushed the GDP to 5.6%, its highest level in more than two years.
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