Monday, July 29, 2013

Household Income Up in June 2013

Finally, household income is moving in the right direction. Median annual household income increased between May and June 2013, according to the latest monthly update from Sentier Research. The June median of $52,098 was 0.7 percent higher than the May median, after adjusting for inflation. This is the first statistically significant increase in more than a year, and as the report states: "It is noteworthy that in this latest monthly reading, real median annual household income managed to increase by 0.7 percent even though there was an increase in consumer prices of 0.5 percent."

Despite the increase, median household income has yet to recover from the Great Recession. In June 2013, median household income was still 4.4 percent below the median of June 2009, the end of the Great Recession. It was 6.1 percent lower than the median in December 2007, the start of the Great Recession. It was 7.2 percent lower than the median in January 2000. 

The Household Income Index for June 2013 was 92.8 (January 2000 = 100.0). The index compares median annual household income in a given month as a percent of its value in January 2000, after adjusting for inflation. 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: June 2013

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