Disposable Income Clearly Growing Slower

February real disposable income was $12,464 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income. In February, real disposable income grew 2.7 percent compared with one year ago, which was virtually identical to the rate of growth in the previous three months. It was the fourth month in a row that income grew less than the historic average of 3.1 percent. And, all income data since October was revised lower. The annual rate of change fell to 3.2 percent. This was the fourth straight month that the annual rate of growth decelerated. While it was still above the historical average, it was the slowest rate of annual growth since April 2015. 

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.