Prices Tepid, but Poised to Rebound with Harvey
Personal disposable incomes and consumer spending both rose 0.2% after adjusting for ,inflation in July. Personal incomes were supported by strong employment gains and returns from higher asset prices. Gains in big-ticket durables were concentrated in furniture and appliances, reflecting earlier gains in home sales and the desires to remodel and upgrade existing homes. The effects of Hurricane Harvey will not show up in those sectors until the waters recede and clean-up can begin in September.