March Income Growth Slowed Significantly

The month-over-month rate of growth in disposable income was the slowest since February 2017.

In March 2019, real disposable income was $14,595 billion, an increase of 2.3% compared with one year ago. That was the slowest rate of income growth since February 2017, and March was the third-straight month of decelerating growth in real disposable income. Typically, real disposable income sets an all-time high almost every single month. However, March’s income level was the lowest since November 2018. 

The annual rate of growth was unchanged at 2.9%, as the rate has been either 2.8% or 2.9%since February 2018. With March’s much slower growth, it is likely that the annual rate of growth in disposable income will decelerate soon.

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


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World Machine Tool Survey

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Gardner Business Index

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