Monthly Income Growth Falls Under 1.0 Percent

(Negative) July real disposable income was $12,822 billion dollars (seasonally adjusted at an annual rate), which as is almost always the case was an all-time high. However, in July, real disposable income grew just 0.9 percent compared with one year ago. The rate of growth fell below 1.0 percent for the first time since January. 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 July, the annual rate of growth was 1.3 percent, which was the slowest since August 2014. Also, this was the 13th month in a row that the annual rate of growth was below the historic average of 3.1 percent.