Tuesday, March 26, 2013

Household Income Falls in February 2013

Median household income fell 1.1 percent between January and February 2013, according to the latest monthly update from Sentier Research. The February median of $51,404 was $590 less than the January median, a statistically significant decline.

According to Gordon Green of Sentier Research, the decline is largely due to a 0.7 percent increase in consumer prices. "Even though we are technically in an economic recovery," says Green, "the most recent experience suggests that real median household income is having difficulty in keeping pace with inflation."

Median household income in February 2013 was 5.6 percent lower than the median in June 2009, the end of the Great Recession. It was 7.3 percent lower than the median in December 2007, the start of the Great Recession. It was 8.4 percent lower than the median in January 2000. The Household Income Index for February 2013 was 91.6 (January 2000 = 100.0). 

An Excel spreadsheet of the entire household income time series is available from Sentier's web site for $25.00.

Source: Sentier Research, Trends in Household Income: February 2013

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