March Real Personal Income Up 1.5%

According to the Bureau of Economic Analysis, March real personal income was $11,677 billion real dollars (seasonally adjsuted at an annual rate). The month-over-month rate of growth in March, 1.5%, is consistent with the rate of growth seen in the second half of 2012. The annual rate of change increased to 2.0%, which is its fastest rate of growth since December 2011. This is nearly double the annual rate of growth seen in the middle of 2012. But, unless the month-over-month rate of growth starts to accelerate, we have seen the peak rate of growth in real incomes for this cycle. Altogether, real personal income continues to be a positive indicator for durable goods manufacturing.

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