Disposable Income Growth Unchanged for Sixth Month

The month-over-month rate of growth in disposable income was remarkably stable, just below the historic average for the sixth month in a row.

In November 2018, real disposable income was $14,460 billion. As is normally the case, real disposable income set an all-time high this month, up 2.8 percent from one year ago. The month-over-month rate of growth was either 2.7 or 2.8 percent for the sixth consecutive month.

The annual rate of growth remained unchanged at 2.7 percent for the fourth month in a row. This followed five straight months of 2.8-percent growth. The annual rate of growth should stay at this rate for at least the next three, if not the next six, months.

Keep in mind that changes in real disposable income typically lead capital equipment consumption by almost 24 months.


Top Shops

‘Top Shops’ is a benchmarking and recognition program designed to help shops build their business.

World Machine Tool Survey

An independent annual survey that collects statistics from machine tool consuming and producing countries and compares them in real U.S. dollars.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more.

Gardner Business Index

A diffusion index measuring month-to-month changes in activity at durable goods and discrete parts manufacturing facilities.