US firms grow more pessimistic on economy


Bearish sentiment: People shop at a supermarket in California. Retail spending has been described as flat to up slightly, echoing recent data that indicated consumers are pulling back on spending. — AFP

WASHINGTON: US economic activity continued to expand from early April through mid-May, but firms grew more downbeat about the future amid weakening consumer demand while inflation continued to increase at a modest pace, a US Federal Reserve (Fed) survey shows, as central bankers mull how long they will need to keep interest rates at current levels.

The US central bank’s latest temperature check on the health of the economy also showed that the jobs market continues to gradually cool back down toward more normalised levels.

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