Real Disposable Income Up 0.6% in June 2013
According to the Bureau of Economic Analysis, May real disposable income was $11,590 billion real dollars (seasonally adjsuted at an annual rate). The month-over-month rate of growth in June, 0.6%, is the second slowest rate of growth since April 2010. The annual rate of change decreased to 1.5%, which is virtually the slowest rate of growth since December 2010. The annual rate of change should continue to slow in the coming months. When comparing growth rates in incomes and spending, it is clear that spending is likely to slow down.
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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