Submitted by CARPE DIEM

According to today’s BEA report, real disposable personal income increased by 1.23% in January compared the same month a year ago (see chart above).
Comments:
1. January marks the 25th consecutive month of positive growth for real disposable personal income.
2. Although there has certainly been a slowdown in the growth of real disposable income over the last 5 months, it’s not necessarily an indication of recession. Notice in the graph that there was a period in 2002-2003 when real disposable income was growing at below 1% in 6 out of 9 months, and several months in 2005 with negative growth, and neither period was recessionary.

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