March Income Growth Fastest since November
Despite the jump in March, annual income growth continued to decelerate and should continue to do so in upcoming months.
(Negative) March real disposable income was $12,482 billion dollars (seasonally adjusted at an annual rate). This was an all-time high for real disposable income. In March, real disposable income grew 3.1 percent compared with one year ago, which matched the historical average growth rate. This was an improvement from the previous four months in which the growth rate was below 3.0 percent. The annual rate of change remained 3.2 percent. This was the fifth straight month that the annual rate of growth indicated a decelerating contraction. While it was still above the historical average, it was the slowest rate of annual growth since April 2015. And, it is quite likely that the rate of growth will continue to decelerate in future months
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.