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US PMI data signals rising stagflation with slowing GDP and persistent inflation risks.

Market News
22 May 2026
Seeking Alpha
View Source
Bearish
pluang ai news

The latest US PMI flash data for May indicates intensifying stagflation, driven by rising manufacturing input costs and weakening service sectors. US GDP growth is slowing to about 1% annualized, while inflation remains elevated between 4% and 5%. This economic environment may force the Federal Reserve to continue raising interest rates despite the slowing economy, potentially risking a burst in the stock market bubble. These developments highlight ongoing challenges for economic growth and financial markets.

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