You may never know it, but Personal Income in the United States has once again powered to new all-time highs – $12,897.3 billion.
But that’s in nominal terms, you say. It, in fact, is just shy from its real all-time highs, which were actually made in the deflationary spikes in 2008:
The most impressive statistic of today’s Personal Income report, however, is Personal Income Excluding Current Transfer Receipts (chained 2005 dollars) — up $101.8 billion dollars (SAAR) m/m, marking the best gain since 2005.
It’s very plain, loud and clear: people are getting back to work, earning more money, and have better buying power than at any point in this recovery. It also suggests that the payroll growth in the last few months has been severely understated, and will likely be revised much higher. Confirming this suspicion is income tax withholding up 20.88% year over year.