Economic News Blog
Posted by: Steven Kline, Jr. 29. August 2016

Income Growth Remained Weak in July

(Negative) July real disposable income was $12,705 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income. In July, real disposable income grew 2.7 percent compared with one year ago. The month-over-month rate of growth was below 3.0 percent in four of the last five months. The annual rate of growth has decelerated steadily since August 2015. In July, the annual rate of growth, now 3.0 percent, was the slowest since November 2014. Also, this was the second month in a row that the annual rate of growth was below the historic average.

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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