During the second and third quarters, American households should recover as much as $6 trillion of the $14 trillion in wealth that they lost since the onset of the financial downturn last year, Barclays Capital analysts said. Even so, consumers probably won’t be ready to start spending freely again any time soon, Barclays said.

Ongoing economic policies and strong cyclical growth will drive a stronger economic recovery than the markets expect, especially in the United States. “We have a lot of policy left to go,” said Larry Kantor, head of research at Barclays Capital. He expects that about half of the federal stimulus money devoted to infrastructure will be spent in 2010. “Economic data will be better than expected, particularly in the U.S.,” Kantor said. “The recovery is not fragile. It has a lot more to run.”

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