US economy rebounding

In an indication that the US economy still has some strength, factory output and housing both rebounded in July.

Factory production rose 0.6 percent in July, reversing June's 0.2 percent drop. Industrial production as a whole was up 0.4 percent last month.

Housing starts also rose strongly last month by 8.3 percent.

Meanwhile, the consumer price index dropped 0.1 percent last month, mainly due to a fall in energy prices. Excluding energy and food, consumer prices rose 0.1 percent. Consumer prices had risen 0.3 percent in June and 0.6 percent in May.

Looking at last month's figures in the context of the previous months', the overall picture to me is one of a moderate economy in terms of both production and inflation.