US services sector flatlined in July, based on the ISM Services Index. The survey-based profile of the sector, which dominates US economic activity, fell to a near-neutral reading last month. A competing survey, however, reported stronger activity for services: “Growth gained momentum in the US service sector during July,” according to the S&P Global US Services Index.

US third-quarter GDP strengthened to a 2.5% annualized rate, according to the Atlanta Fed’s GDPNow nowcast revision for Aug. 5. The increase marks a modest downshift from the 3.0% rise reported for Q2.

National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh are the leading candidates to replace Fed Chairman Powell next year, according to prediction markets. Speaking with CNBC, President Trump spoke highly of Hassett and Warsh and said that Treasury Secretary Bessent has taken himself out of contention for the Fed position.

Total US household debt levels rose during the second quarter, according to NY Fed data. The 1% rise was driven by as student loans and home borrowers facing rising credit challenges.

US trade deficit narrows as imports fall in June. Imports fell roughly 4% from May after businesses front-loaded imports to avoid sweeping tariffs. Exports also fell, but by jjust 0.5%, as the US sold fewer industrial goods to foreign buyers.