Favourable economic conditions and rising consumer wealth were responsible for much of the growth in America's online economy, one of the country's leading economic commentators said this week.
Speaking at the BancBoston Robertson Stephens international technology and telecoms conference in London today, BankBoston chief investment officer Ned Riley said consumer confidence was the key to America's ecommerce boom.
"The US consumer is so flush - he possesses an attitude of wealth and can afford trinkets and PCs and modems - it's like a replacement of the third car," Riley said. "If the economy wasn't doing so well, the Internet wouldn't do as well."
Widespread corporate adoption of the Internet as a medium for transmitting business information had made online shopping available to millions of people who did not have PCs at home, Riley said.
US companies had also promoted their online activities much more vigorously than their European counterparts, Riley said: "One of the things the Internet companies have done is engage in lots of advertising and promotional activity."
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