For the first time since at least the 1960s, growth in real disposable income has remained below real consumer spending growth for 24 straight months. This two-year trend represents the longest period on record where domestic consumption increases have outpaced inflation-adjusted earnings gains.
The data indicates that American households have consistently expanded their expenditures faster than their take-home pay has grown after accounting for inflation. This divergence between earnings and outlays has now persisted for two full years, marking an unprecedented stretch in modern economic history.