Wells Fargo Weekly Economic Commentary

The highlights from the current Wells Fargo update are below:

Economic Growth Remains in Positive Territory

· The heavy week of economic indicators continues to reflect slow but steady economic growth. One positive surprise was the stronger-than-expected increase in retail sales in July. The retail sales “control group” showed a solid gain on the month, which should put some of the recession anxiety to rest.

· Housing starts, however, fell in July, but the trend is more promising than the headline suggests. Permits rose 6.8 percent, which is a good sign that starts will continue to climb in the coming months. Despite the drop in starts in July, the housing market continues to stabilize.