Economic News Blog
Posted by: Steven Kline, Jr. 5. January 2016

Dispoable Income Grows Slower

November real disposable income was $12,416 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income. In November, disposable income grew 3.5 percent compared with one year ago. This is below the long-term historical average. However, the month-over-month rate of growth has decelerated two months in a row. As a result, the annual rate of growth, now 3.6 percent, was unchanged for the third straight month. It certainly appears that disposable income growth is set to slow as we head into 2016, just as the Fed begins raising interest rates.

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.

Comments are reviewed by moderators before they appear to ensure they meet Gardner Business Media’s submission guidelines.
blog comments powered by Disqus