Real Disposable Income Sees Faster Growth in July

According to the Bureau of Economic Analysis, July real disposable income was $11,970 billion real dollars (seasonally adjusted at an annual rate). This is the second highest level of income ever (only December 2012, which was artificially inflated due to tax law changes, was higher). The month-over-month rate of change in July was 2.6%. This is the fastest rate of monthly growth since October 2012 (excluding November and December 2012 because of the previously mentioned tax law changes). The annual rate of change, now 1.1%, has grown at a faster rate every month in 2014. This is the fastest rate of annual growth in disposable income since October 2013. However, the rate of growth is still well below the historic average rate of growth in disposable income

Real disposable 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; industrial motors, hydraulics and mechanical components;machinery and equipment manufacturing; metalcutting job shops; oil, gas field and mining machinery; power generation; primary metals; and printing.