Economic News Blog
Posted by: Steven Kline, Jr. 30. August 2019

Income Growth Slows in July

In July 2019, real disposable income was $15,019 billion, which was its highest level ever and only its second month ever above $15,000 billion. However, the month-over-month rate of growth was 3.0%, which was the slowest rate of growth since April 2017 and the first month below the historic average rate of growth since July 2017. In 2019, the month-over-month rate of growth has been notably slower than it was in 2018.

The annual rate of growth remained unchanged at 3.6%, keeping it at its slowest rate of growth since May 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.

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