Economic News Blog
Posted by: Steven Kline, Jr. 31. May 2016

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: aerospaceconstruction materialscustom processorselectronics/computers/telecommunications equipmentfood/beverage processingforming/fabricating (non-auto)hardwareHVACindustrial motors/hydraulics/mechanical componentsmachinery/equipment manufacturingmetalcutting job shopsoil/gas field/mining machinerypower generationprimary metals; and printing.

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