Goldilocks Rocks: Consecutive Monthly Real Disposable Income Growth Strongest Since 1999
The Department of Commerce reported today that disposable income, adjusted for inflation, grew by 3.9% in September compared to the same month a year ago (Table 10 in the report), which marks the 14th consecutive month that real disposable income has increased by 2.9% or higher (the approximate average growth rate since 1970, see horizontal line in graph above).
CD Exclusive: This record of consecutive monthly growth in real disposable income hasn't been matched in the U.S. since July 1997 - April 1999, when real income grew at or above 2.9% for 22 months during the height of the last economic expansion (see shaded areas on the graph above, click to enlarge).
The Goldilocks economy keeps rockin'.
Update: Real disposable income is one of the 4 key economic variables that the National Bureau of Economic Research watches to determine when the U.S. economy goes into recession, see my previous post. Given the 14-month record of above-average real personal income growth, it wouldn't appear that a recession is imminent.