INCOME EROSION

Since reaching $18.1 trillion in 4/25, real disposable income remained flat till 1/26 but has since slid to $18 trillion, meaning real income hasn’t risen in over a year. It’s a combination of falling wage growth and rising inflation. Ignoring government transfers, real income peaked at $16.72 trillion on 9/25 and is now $16.56 trillion. Declines rarely happen outside recessions. AI/data center spending is partly offsetting this by boosting profits.