NEW YORK, June 12 (Xinhua) -- Slower growth is spreading around the world with inflation being main threat to causing global recession, U.S. Conference Board said here on Thursday.

    Vice President and Chief Economist of U.S. Conference Board Bart van Ark told a press briefing that with U.S. consumer confidence hitting the lowest level since 1992, and employment trends index showing no relief in short term, U.S. economy is in a solid slow growth mode, with little perspective to move much in rest of 2008.

    Meanwhile, Europe and emerging economies in Asia are also showing significant slowdown in economy growth, he said.

    Van Ark pointed out that the main downward risk comes from global inflation. While U.S. and European inflation trends may come down as demand eases, the global trend, in particular for emerging economies remains worrying, he said.

    "Even after speculative bubbles burst, inflation rate may not come down to level before the increase," van Ark said. "Demand-supply mismatches will not be easily relaxed, and protectionist backlashes may distort global growth."

    Established in 1916, the U.S. Conference Board is the world's preeminent business membership and research organization, best known for its monthly U.S. Consumer Confidence Index and the Leading Economic Indicators. 




ECB: Inflation longer than expected

  BERLIN, June 12 (Xinhua) -- Inflation is expected to remain high for more protracted period than previously thought, said the European Central Bank (ECB) in its June monthly bulletin.

    The bulletin said the Governing Council is in a state of "heightened alertness" to ensure price stability for the risks to price stability over the medium term have increased further. Full story

ECB: Public finances in euro area to deteriorate

    BERLIN, June 12 (Xinhua) -- "Following a relatively favorable fiscal outcome in 2007, public finances in the euro area look set to deteriorate," said the European Central Bank (ECB) in its June monthly bulletin.

    The ECB said, the average general government budget deficit for the countries in the euro zone is projected to increase again in 2008 and 2009, which is partly for the sake of slowing economic growth. Full story