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US business activity stalling; consumers' inflation expectations surge

The article from MSN discusses recent economic trends in the U.S., highlighting a significant slowdown in business activity as indicated by the S&P Global Flash US Composite PMI Output Index, which fell to 50.9 in June from 54.5 in May, signaling near-stagnation in the private sector. This decline is attributed to weaker demand, with manufacturing output dropping to its lowest since May 2023 and services activity also decreasing. Concurrently, consumer inflation expectations have surged, with a New York Federal Reserve survey showing that Americans now expect inflation to rise by 3.3% over the next year, up from 3% in May. This increase in inflation expectations could influence future economic policy decisions, particularly regarding interest rates, as the Federal Reserve aims to manage inflation while supporting economic growth. The article also notes that despite the slowdown, there are no immediate signs of a recession, but the economic environment remains cautious with businesses and consumers adjusting to persistent inflationary pressures.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/other/us-business-activity-stalling-consumers-inflation-expectations-surge/ar-AA1zx4xv ]