While their expectations have improved over the past few weeks, US businesses fear the world's largest economy will remain flat through the rest of the year, dpa quoted the Federal Reserve as saying today. In its latest Beige Book, which surveys business expectations across the country, the US central bank said all regions reported the economy "remained weak or deteriorated further" since mid-April. But the Fed said five of the 12 regions "noted that the downturn trend is showing signs of moderating." The US economy has been in recession since December 2007, the longest downturn since the 1930s. The Fed and many economists have projected that the recession will end some time in the second half of this year. The International Monetary Fund has predicted a recovery will only take hold in 2010. For weeks, Fed Chairman Ben Bernanke and other government officials have touted some limited indications that the economy is stabilizing. Many businesses said their "expectations have improved, though they do not see a substantial increase in economic activity through the end of the year."
