Wednesday, January 2, 2013

1/1/2013: US Household Income: down 7.8% on January 2000

Sentier Research have published analysis new series on the US Household Income data (see report here).

Topline analysis, quoted directly from the report (emphasis mine):

  • According to new data derived from the monthly Current Population Survey (CPS), real median annual household income in November 2012 was  $51,310, statistically unchanged from the October 2012 median of $51,134. 
  • This is the second month in a row that real median annual household income has failed to show a statistically significant change. I
  • With the exception of a 0.7 percent increase between April and May, all of the other month-to-month changes in real median annual household income since January 2012 have not been statistically significant. 
But wait, things are even worse:
  • The November 2012 median annual household income of $51,310 was 4.4 percent lower than the median of $53,681 in June 2009, the end of the recent recession and beginning of the “economic recovery.” 
  • The November 2012 median was 6.9 percent lower than the median of $55,093 in December 2007, the beginning month of the recession that occurred more than four years ago. 
  • And the November 2012 median was 7.8 percent lower than the median of $55,650 in January 2000, the beginning of this statistical series. 
  • These comparisons demonstrate how significantly real median annual household income has fallen over the past decade, and how much ground needs to be recovered to return to income levels that existed more than ten years ago.
And two charts to illustrate:

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