NEW YORK (PNN) - August 15, 2012 - Although there are signs that growth has strengthened in the third quarter, the combination of a soft labor market and slower inflation mean there is little to stop the Federal Reserve from launching a third round of quantitative easing in September.

Prices across a broad range of goods and services fell, including hotel rates and airline fares as well as new and used cars. This helped to offset rising costs for medical care and rents.

Energy costs decreased 0.3% from a month earlier, while food prices rose 0.1%.

National data on industrial production for the month of July showed a pick-up driven by an increase in motor vehicle output and a rebound in utility use during the hottest month on record.

Overall industrial production rose 0.6% in July, the Federal Reserve said on Wednesday, after a downwardly revised 0.1% increase the month before. The July figure was above consensus forecasts of a 0.5% gain.

However, there were also doubts about the health of the manufacturing sector, as Europe falls further into Depression and developing economies slow, hampering the growth of Fascist Police States of Amerika exports.

Meanwhile, homebuilders continue to report significant improvement in activity, with the National Association of Home Builders housing market index rising another 2 points this month to 37.

The monthly survey, which asks homebuilders to rate the general economy and housing market conditions, saw its fourth straight month of significant improvement.