Home|Who We Are|Our Services|Resources|News Center|Contact Us|Client Access
More Articles  Printer Friendly Version

 

Real Spending Power Grew Twice The Rate Of The Last Expansion

The average American's real spending power rose in 2018 at nearly twice the pace of the last economic expansion, according to data released on Friday by the Bureau of Economic Analysis.

Real disposable personal income per capita in the 12 months through December 2018 rose by 3.5% over the 12-months of 2017, compared with a compound annual growth rate of 1.8% in the five-year economic expansion that ended in July 2007 — the credit-fueled boom preceding the world financial crisis.

The trendline is a key component in future growth, since 70% of U.S. economic activity is consumer-driven. With spending power running nearly twice the rate of growth of the last expansion, an economic downturn anytime soon seems unlikely.

The Standard & Poor's 500 stock index closed at 2,803.69 on Friday, up from 2,792.67 last Friday. It was the fifth straight weekly gain for this broad benchmark of U.S. public equities, and the index edged closer to its all-time closing high on September 20th, 2018.

A key growth investment in a broadly diversified portfolio, the S&P 500 index is volatile, unpredictable, and suffered a 19.8% plunge from September 20th's all-time closing high to the Christmas Eve closing low of 2,351.10, and then began its current rebound.


This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.


Email this article to a friend


Index
Is This A New Bull Market? 
The Pandemic And Stocks
Despite Disastrous Jobs Report, Stocks Surged 1.6% Friday
Amid The Crisis In The Economy, Two Good Anomalies
Business Owners Must Act Now On COVID-19 Relief
Financial Economics With The Epidemic's End In Sight
The Beginning Of The End?
An 11.4% One-Week Gain In Stocks
What Investors Should Expect And A Business Owner Alert 
Is the Coronavirus Bear Market Over?
What's An Investor To Think Now?
Will Covid-19 Crisis Be Short-Lived?
Despite Covid-19, Signals Of Economic Health Continue
Covid-19: Facts And Perspective For Investors
Economists Expected Q1 U.S. Growth Of 1.6%; It's 2.6%! 
Stocks Close At New High As Business Owner Optimism Surged

This article was written by a professional financial journalist for Responsive Financial Group, Inc and is not intended as legal or investment advice.

©2020 Advisor Products Inc. All Rights Reserved.
© 2020 Responsive Financial Group, Inc | 204 W Wing St, Arlington Heights, IL 60005 | All rights reserved
P: 847-670-8000 | F: 847-590-9806 ben@rfgweb.com |
Disclosure | Contact Us
Responsive Financial Group, Inc. is a fee-only registered investment advisory firm in the State of Illinois. Information on this site is compiled from multiple locations and is believed to be accurate. Incorrect information may come from these outside sources. Should you notice anything please notify us immediately. Thank you!