Economic News Blog
Posted by: Steven Kline, Jr. 8. March 2019

Income Growth Cruises Above Average in December

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.

Comments are reviewed by moderators before they appear to ensure they meet Gardner Business Media’s submission guidelines.
blog comments powered by Disqus