Economic News Blog
Posted by: Steven Kline, Jr. 4. May 2015

Income Growth Above Average for Third Month

March real disposable income was $12,258 billion dollars (seasonally adjusted at an annual rate). This was the second highest level of disposable income ever. In addition, the month-over-month rate of growth was 3.3% in March. This was the fifth month in a row where incomes grew at least 3.0% compared with one year ago. And, this was the fourth month in a row of above average income growth. However, the rate of growth decelerated the last two months. On an annual basis, the rate of growth in income was unchanged from last month. It appears that income growth may have peaked. Therefore, the change in income is neutral for the future of manufacturing and capital equipment spending.

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.

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