A run of U.S. economic releases on Thursday sketched a two-speed economy at the start of the third quarter. S&P Global’s flash purchasing-managers survey showed the services PMI climbing to 55.2 in July, the strongest reading in seven months and well above the 53.0 consensus. Manufacturing, by contrast, slipped into contraction territory at 49.5 versus a 52.7 forecast, pulling the composite index to a level S&P estimates is consistent with a 2.3% annualised expansion in GDP. Regional factory gauges have painted a more upbeat picture. The Philadelphia Fed’s July business-outlook index jumped to 15.9, its highest since February, while the New York Fed’s Empire State index turned positive at 5.5. The Kansas City Fed composite index edged up to 1, and the Chicago Fed National Activity Index improved to –0.10, yet the nationwide S&P reading underscores that manufacturing momentum remains fragile. Housing data were weaker. New-home sales in June rose a modest 0.6% to a 627,000 annual pace, missing the 650,000 estimate, while the supply of homes on the market increased to 9.8 months. The median price of a new property fell to $401,800, down 3% from a year earlier and well below the $435,300 median for existing homes, which hit a record high even as resale transactions slid 2.7% to a nine-month low of 3.93 million units. Starts improved to 1.32 million, but building permits were revised down slightly to 1.39 million. Taken together, the reports point to solid service-sector demand and pockets of resilience in factory sentiment, offset by continuing softness in housing and a nascent cooling in goods production. Investors will look to upcoming payroll and inflation prints for clearer guidance on whether the economy can sustain its current ‘soft-landing’ trajectory.