Income Growth Revised Significantly Lower

(Negative) In this month’s release of disposable income data, all data back to November 2016 was revised, pushing down previous income totals significantly. June real disposable income was $12,793 billion dollars (seasonally adjusted at an annual rate). June disposable income was unusual in that it was not an all-time high. In June, real disposable income grew 1.0 percent compared with one year ago, which was the slowest rate of month-over-month growth since December 2016. This rate of growth was well below  the historic average of 3.1 percent. The annual rate of growth has decelerated steadily since September 2015. In June, the annual rate of growth was 1.4 percent, which was the slowest since August 2014. Also, this was the 12th month in a row that the annual rate of growth was below 3.1 percent, which is the historic average.