Real income growth for U.S. households remained unusually weak heading into the holiday season, even as economists upgraded their outlook for next year’s economic expansion, according to a new report from the JPMorganChase Institute.
Median real income growth for Americans aged 25 to 54 slowed to 1.6 percent in October, a pace comparable to the soft labor market recovery in the 2010s following the Great Recession, the Nov. 25 analysis shows.
“With pandemic-era excess cash liquidity in the rearview mirror, consumers are facing a holiday spending season with budgets tempered by tepid income growth but augmented by strong stock market gains,” the report states. “Importantly, nominal growth remains roughly consistent with pre-pandemic levels, but real purchasing power gains are at a relatively low level because of the higher pace of consumer price increases.”…