Monday, February 10, 2020

Median Household Income Falls in December 2019

Median household income fell between November and December 2019, after adjusting for inflation. The $65,666 December median was 0.8 percent below the November 2019 median, according to Sentier Research. "The relatively large increase in inflation over the past few months has had a negative effect on real median annual household income," explains Sentier. The Sentier estimates are derived from the Census Bureau's Current Population Survey and track the economic wellbeing of households on a monthly basis.

Despite the recent dip, "real median household income has continued to display an upward trend over the past 12 months (up 1.1 percent)," says Sentier's Gordon Green, "and especially since the low point reached in June 2011 (up 16.6 percent)." At the June 2011 low point—two years after the official end of the Great Recession— median household income was just $56,308.  

Sentier's Household Income Index for December 2019 was 105.4 (January 2000 = 100.0). To put this in perspective, the December 2019 median, after adjusting for inflation, was just 5.4 percent higher than the median of January 2000—almost exactly two decades ago. To stay on top of these trends, look for the next monthly update from Sentier.

Source: Sentier ResearchHousehold Income Trends: December 2019

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