August Disposable Income Grows Slowest since Jan. '14
(Negative) August real disposable income was $12,697 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income (but previous months were revised lower). In August, real disposable income grew 2.4 percent compared with one year ago. The month-over-month rate of growth was below 3.0 percent in five of the last six months. The annual rate of growth has decelerated steadily since August 2015. In July, the annual rate of growth, now 2.9 percent, was the slowest since November 2014. Also, this was the second month in a row that the annual rate of growth was below 3.0 percent and the third month in a row below average.
Real disposable income is one of the earliest leading indicators for the following end markets: aerospace; construction materials; custom processors; electronics/computers/telecommunications equipment; food/beverage processing; forming/fabricating (non-auto); hardware; HVAC; industrial motors/hydraulics/mechanical components; machinery/equipment manufacturing; metalcutting job shops; oil/gas field/mining machinery; power generation; primary metals; and printing.blog comments powered by Disqus