Income Growth Slows in July

The month-over-month rate of growth was 3.0%, which was the slowest rate of growth since April 2017.

In July 2019, real disposable income was $15,019 billion, which was its highest level ever and only its second month ever above $15,000 billion. However, the month-over-month rate of growth was 3.0%, which was the slowest rate of growth since April 2017 and the first month below the historic average rate of growth since July 2017. In 2019, the month-over-month rate of growth has been notably slower than it was in 2018.

The annual rate of growth remained unchanged at 3.6%, keeping it at its slowest rate of growth since May 2018. Also, it was down from its peak rate of growth of 4.0% in December 2018. With noticeably slower month-over-month growth since the beginning of the year , it is likely that the annual rate of growth in disposable income will decelerate more in the months ahead.

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

Reports

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.