The US economy expanded in the second quarter at a slightly faster pace than initially estimated on a pickup in business investment and an outsized boost from trade.
This week did not have a large volume of data released, but it did have some items of note. A focus this week was on housing. The National Association of Homebuilders/Wells Fargo sentiment indicator fell to 32 in August versus 33 last month.
Underlying US inflation accelerated in July to the strongest pace since the start of the year, though a tepid rise in goods prices tempered concerns about tariff-driven price pressures.
There were two main releases of note this week. The first was from the Institute of Supply Management which reported its services gauge declined to 50.1 in July from 50.8 previously.
The US merchandise-trade deficit shrank in June by more than forecast, reflecting a broad decline in imports. The shortfall in goods traded narrowed 10.8% to $86 billion from the prior month, Commerce Department data showed Tuesday.
Investors got a view of the health of the housing market through the usual two key reports—new and existing home sales data. Existing home sales, which comprise about 90% of residential transactions, fell to a nine-month low thanks to high prices.