Disposable Income Clearly Decelerating
January real disposable income was $12,444 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income. In January, real disposable income grew 2.8 percent compared with one year ago. This was the slowest rate of month-over-month growth in incomes since September 2014. It was the third month in a row that income grew less than 3.0 percent. And, all income data for the last six months was revised lower. The annual rate of change fell to 3.3 percent. This was the third straight month that the annual rate of growth decelerated. While it was still above the historical average, it was the slowest rate of annual growth since May 2015.
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