Tuesday, September 9, 2008

US economy 'facing stagflation'

US economy 'facing stagflation'

The US economy is facing slow growth and higher prices, according to the most recent survey by the US central bank, the Federal Reserve.

Economic activity was "weak, soft or subdued" across the country, said the Fed's latest Beige Book report.

And spending slowed, with consumers concentrating on "food, staples and essential items" rather than luxuries. more....