The economic highlights over the past week in the United States continued to indicate positive trends particularly in the housing market and durable goods orders.

This feel-good factor was also reconfirmed from the relatively positive Gross Domestic Product result.

Sales of new US homes rose to 9.6 per cent, hitting their highest level in 10 months in July. In fact, this was the most significant gain since February 2005 and it reduced the supply of unsold homes on the market, in yet another sign that housing activity has stabilised after a three-year slump. Meanwhile, long-lasting manufactured goods surged to a positive 4.9 per cent in July from June's negative 1.3 per cent, well above forecasts of a three per cent increase.

This was the largest advance in two years, supported in part by a surge in demand for aircraft.

The US economy shrank less than expected in the second quarter, as the Gross Domestic Product fell at a one per cent annual rate, unchanged from an estimate last month.

A separate report from the Labour Department showed that the number of US workers filing for new claims for jobless benefits fell by 10,000 to 570,000 during the last week of August.

On Monday, the Institute for Supply Management-Chicago issued its index of Midwest business activity for August, which unexpectedly rose into expansionary territory as it reached the five level from its June reading of 43.4, well above the 48 anticipated by economists.

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