Disposable Income Growth Accelerating in 2016
(Neutral) April real disposable income was $12,564 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income. In April, real disposable income grew 3.3 percent compared with one year ago, which was slightly faster than the historical average growth rate. In the first four months of 2016, the month-over-month rate of growth has accelerated from its low of 3.0 percent in December 2015. However, the annual rate of growth has remained unchanged at 3.4 percent. Since July 2015, the annual growth has fluctuated in a very narrow band of 3.4 to 3.6 percent.
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