October Income Growth Slows

Month-over-month income growth was below 3.0% for the fourth time in five months.

In October 2019, real disposable income was $15,066 billion, which was slightly lower than the previous month’s income level. The month-over-month rate of growth was 2.8%, which was significantly slower growth than in September. Additionally, income growth was below 3.0% for the fourth time in five months. 

The annual rate of growth decelerated to 3.2%, which was its slowest rate of growth since January 2018. Additionally, it was down from its peak rate of growth of 4.0% in December 2018. The slower month-over-month growth, as well as quarter-over-quarter growth, indicates that the annual rate of growth will continue to decelerate in the months ahead.

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


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