February Real Personal Income Up 1.3%
According to the Bureau of Economic Analysis, February real personal income was $11,626 billion real dollars (seasonally adjsuted at an annual rate). After November through January data on incomes were artificially inflated and then deflated due to tax law changes, February real personal income is back in line with the trend from October 2012. Month-over-month, incomes grew 1.3%, which was slightly less than month-over-month rate of growth from May to October 2012. The annual rate of change improved to 1.9%, which is the fastest rate of growth since December 2011. The annual rate of change will likely continue to accelerate for at least the next few months. This indicator continues to be a positive sign for durable goods manufacturing.
Real personal 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; inudstrial 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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