Income Growth Cruises Above Average in December

December’s rate of growth in real disposable income was the fastest since September 2015.

In December 2018, real disposable income was $14,635 billion. As is normally the case, real disposable income set an all-time high this month, up 3.9 percent from one year ago. December was the first month with above-average income growth (3.1 percent) since October 2015. 

The annual rate of growth accelerated ever so slightly to 2.9 percent, which broke a string of 10 consecutive months of 2.8-percent growth in disposable income. December’s annual rate of growth was the fastest since May 2016. It is possible that the annual rate of growth will accelerate for a few more months

Keep in mind that changes in real disposable income typically lead capital equipment consumption by almost 24 months.


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