Monthly incomes increase is highest in 11 months
Washington — The Dow Jones average isn't all that's showing a big boost these days.
Despite a drop in factory pay, Americans' personal income climbed 1 percent in July - the most in 11 months - because of the tax cut and a Social Security cost-of-living increase, the government said. After taxes, Americans did even better; disposable income jumped 2.1 percent, the Commerce Department said. It was the most that closely watched indicator has climbed in 2 years.
The number of housing starts increased in July by a third - the biggest jump since 1959. A government spokesman attributed the leap to a temporary speedup in new, government-subsidized apartments. The subsidies are due to be phased out by the Reagan administration by November.