Income Growth Stable for Six Months
Real personal income has grown between 3.0 and 3.3 percent since March.
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: aerospace; construction materials; custom processors; electronics/computers/telecommunications equipment; food/beverage processing; forming/fabricating (non-auto); hardware; HVAC; industrial motors/hydraulics/mechanical components; machinery/equipment manufacturing; metalcutting job shops; oil/gas field/mining machinery; power generation; primary metals; and printing.