Income Growth Below Average for Second Month

Income growth was just below average for the second straight month, pushing the annual grow in income to its slowest rate since March 2018.

In August 2019, real disposable income was $15,073 billion, which was its highest level ever by quite a bit. However, the month-over-month rate of growth was 3.0%, which is slower than the historic average, for the second month in a row. Also, it was the slowest rate of growth since April 2017 and the first month. In 2019, the month-over-month rate of growth has been notably slower than it was in 2018.

The annual rate of growth remained decelerated to 3.4%, which was its slowest rate of growth since March 2018. Also, it was down from its peak rate of growth of 4.0% in December 2018. With noticeably slower month-over-month growth since the beginning of the year , it is likely that the annual rate of growth in disposable income will decelerate more in the months ahead.

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


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