Disposable Income Maintains Growth Rate
According to the Bureau of Economic Analysis, June real disposable income was $11,943 billion real dollars (seasonally adjusted at an annual rate). This is the second highest level of income ever (only December 2012, which was artificially inflated due to tax law changes, was higher). The month-over-month rate of change in June was 2.3%. The month-over-month rate of change has been virtually unchanged in 2014. The annual rate of change, now 0.9%, has very gradually accelerated the last five months. Despite the accelerating growth, the annual rate of growth in disposable income is still almost 67% below the historical average.
Real disposable income is one of the earliest leading indicators for the following end markets: aerospace; construction materials; custom processors; electronics, computers and telecommunications equipment; food and beverage processing; forming and fabricating (non-auto); hardware; HVAC; industrial motors, hydraulics and mechanical components;machinery and equipment manufacturing; metalcutting job shops; oil, gas field and mining machinery; power generation; primary metals; and printing.
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