While US personal income grew at a robust 8.8% annualized pace the first four months of 2025, it was distorted by a series of one-off transfer payments.* In fact, wages and salaries grew just 2.6% annualized during that period. “With labor market momentum grinding lower, wage growth is likely to continue cooling, weighing further on US consumption,” says Portfolio Strategist Garrett Melson.
* Source: Bloomberg
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