Deflation shock hurting US firms' business growth

NEW YORK: The highest inflation-adjusted borrowing costs since the 1980s are hindering US companies' ability to build their businesses.

Customers of Airgas Inc are reducing purchases of industrial gases such as nitrogen and acetylene because of rising real interest rates, said Chief Executive Officer Peter McCausland. Real rates account for inflation or deflation.

"There is no question" high real rates have aggravated Airgas' sales decline, he said in an interview.