Economic News Blog
Posted by: Steven Kline, Jr. 1. October 2015

Income Growth Stable for Six Months

August real disposable income was $12,258 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income. In July, disposable income grew 3.2 percent compared with one year ago. The rate of growth rate has been between 3.0 and 3.3 percent since March whereas from November to February it fluctuated between 3.5 and 4.0 percent. The annual rate of change was 3.3 percent for the second month in a row, which is the fastest rate of growth since March 2007. Unless the month-over-month rate of growth accelerates then the annual rate of change will start decelerating soon.

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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