Thursday, November 01, 2007

A Bullish Indicator

Yesterday’s GDP report revealed an extremely positive story.

Real disposable incomeone of the most important indicators of the economy and the health of consumers—showed a remarkable 4.1 percent growth over the past year.

Look at this beautiful chart.

In fact, it’s up $370 plus billion dollars from a year ago, with energy costs flat. This type of trend is not going to simply fall over and collapse the minute we walk into the next quarter.

Incidentally, real disposable income also happens to be one of the best political indicators out there. Its continued growth is cause for celebration for the GOP candidates and concern for Democrats.