US economy continued to show signs of growth. After a stronger-than-expected ISM manufacturing index, ISM non-manufacturing index reached 58.7, highest since December 2005. After a decline in May, factory orders increased 1.1 percent in June. Economists warn the 4.0 percent GDP growth from the second quarter is not sustainable. There was no significant wage increase to boost purchasing power, and 1.7 percent of that growth came from inventory growth, which may payback in the third quarter. Latest data also shows that nonfarm productivity was not enough to make the steep decline in the previous one, while revolving consumer credit growth has remained constrained.    

Globally, latest data showed the economic growth in Europe and Latin America remained sluggish. Italy has slipped into recession, France stagnated, UK stuck, and German growth was below expectation. Brazilian and Mexican data were also weaker than expected.