Personal income is just about at the break even point, that point where its growth rate is at or near zero for the y/y change.
There’s one thing I know about Americans… they can’t save a dime to save their lives. So, as the rate of growth in incomes increases, or decreases, so does the rate of growth of consumption. Any news we get of positive growth in incomes is good news for the overall economy.
At the same time, something that has happened over the past few months is the savings rate has turned positive. America’s savings rate is sitting at 4.8%. That is a fairly high rate considering the historic levels it usually sits at. Sign of the times.
Overall, if we continue to see a move towards positive territory in this number, we’ll see an overall growing economy. I’m continually getting bullish on the U.S. economy.
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