Manufacturers have made more computers and cars in July and homebuilders gained more confidence with the market. Prices remained unchanged as the US economy continued to expand as the inflation was contained.
Production at mines, factories, and utilities increased 0.6 percent in July after a 0.1 percent gain in the previous month. According to the data released by the Federal Reserve, the cost of living for the past 12 months increased at its slowest pace in almost two years. Residential construction companies increased their output to a new five year high.
The data took away concerns regarding the debt crisis in Europe, which has dragged the region to a brink of a recession and slowed demand in Asia. It also signaled the end of the recovery in the US that started in June of 2009. Because of the lack of pricing power made it possible for Fed policy makers to make more steps to make sure that the expansion is sustained.
UK jobless claims dropped in July as unemployment dropped to its lowest in a year. This is due to the Olympic Games, which created jobs.
Australian consumer confidence dropped to its lowest level in the last five months as wages increased. It sent mixed signals regarding the economy as its central bank decides on whether to hold interest rates that is presently at a developed-world high.
US consumer price index remained unchanged in July. It was less than the average forecast of 85 economists surveyed by Bloomberg. The cost of living also rose 1.4 percent over the past 12 months.
