Personal Income for United States: 0.5%

Personal income rose 0.5% in July, matching expectations and up from an unrevised 0.6% increase in June. Spending rose 0.8%, also in line with expectations, and above Junes unrevised 0.4% gain. The core PCE deflator rose 0.1%, it smallest gain of the year, while the top line deflator rose 0.3%. The saving rate fell to -0.9%.

While a 0.5% monthly increase is great by any standards, it is important to note that this is not inflation adjusted. On anannualy basis this is like a 6% increase (12months * 0.5%), but on an inflation adjusted basis it is closer to a 3% annualized increase.

In terms of housing I think the bigger story is wealth distribution. The gini coefficient (a measure of wealth inequality) has been increasing for the past 30 years. Population growth will likely stay relatively steady (the echo echo boomers time frame has been distributed pretty evenly, and immigration will likely remain constant), which just leaves one question: "What percent of the current working population can't afford a house?" This can be answered by lookin at the number of people in below $8/hr jobs, and that number is definitely increasing.