econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 28 April 2017

March 2017 Median Household Income Not Significantly Different

from Sentier Research

According to new data derived from the monthly Current Population Survey (CPS), median annual household income in March 2017 was $58,673, not significantly different from the February 2017 median of $58,545.

Median household income at the beginning of the great recession in December 2007 was $58,058, so the current median is 1.1 percent above that level. The Sentier Household Income Index (HII) for March 2017 was 99.9 (January 2000 = 100). The level of real median annual household income in January 2000 was $58,748, which marks the beginning of this statistical series.

Median annual household income has displayed a somewhat erratic pattern over the past several years. More broadly, there has been a general upward trend in median household income since the post-recession low point reached in August 2011. This upward trend was initially marked by monthly movements, both up and down. Many monthly changes were not statistically significant. By the summer of 2014 however, that uneven trend became dominated by a series of significant monthly increases. However, with the exception of some minor ups and downs, median annual household income has essentially been flat over the past year. (See Figure 1.)

Median annual household income in March 2017 ($58,673) was not significantly different than March 2016 ($58,490), but was 10.3 percent higher than in August 2011 ($53,176). This general upward trend since August 2011 reflects, in part, the low level of inflation as measured by the CPI for all items used in this series, as opposed to the CPI less food and energy. Energy prices have recently been fluctuating, which has had an effect on the CPI for all items. The CPI for all items decreased by 0.3 percent between February 2017 and March 2017, compared to an increase of 0.1 percent between January 2017 and February 2017.

[click on image to enlarge]

/images/z%20SentierResearch.png

According to Gordon Green of Sentier Research:

The lack of change in median annual household income for March 2017 keeps us in a situation where income was essentially flat over the past year. Although the March 2017 median ($58,673) was $183 higher than March 2016 ($58,490), this difference is not statistically significant. We continue to monitor the course of inflation, as this has a significant effect on the trend in real median annual household income. The CPI for all items decreased by 0.3 percent between February 2017 and March 2017, compared to an increase of 0.1 percent between January 2017 and February 2017. We are now at a point now where real median household income is 1.1 percent higher than at the beginning of the great recession in December 2007, and closing in on the level of $58,748 for January 2000, the beginning of this statistical series.

The March reading on the labor market from the U.S. Bureau of Labor Statistics shows, for the most part, an improvement compared to February:

  • The official unemployment rate in March 2017 was 4.5 percent, down from the February 2017 rate (4.7 percent).
  • However, the median duration of unemployment was 10.3 weeks in March 2017, slightly higher than February 2017 (10.0 weeks).
  • The broader measure of employment hardship, which includes the unemployed, marginally attached workers (of which discouraged workers are a subset), and persons working part-time for economic reasons, was 8.9 percent in March 2017, lower than the February 2017 reading (9.2 percent).

Real median annual household income in March 2017 can be put into broader perspective by comparisons with previous levels of household income since the last recession began and dating back to the start of the last decade:

  • The March 2017 median income of $58,673 is 2.9 percent higher than the median of $56,995 in June 2009, the end of the recent recession and beginning of the "economic recovery."
  • The March 2017 median is 1.1 percent higher than the median of $58,058 in December 2007, the beginning month of the recession that occurred more than nine years ago.
  • And the March 2017 median income is drawing closer to the median of $58,748 in January 2000, the beginning of this statistical series.

The Sentier Household Income Index (HII) shows the value of real median annual household income in any given month as a percent of the base value at the beginning of the last decade (January 2000 = 100.0 percent):

  • The Sentier HII stood at 99.9 in March 2017, higher than December 2007 (98.8) when the "great recession" began, and even higher than June 2009 (97.0), when the "economic recovery" subsequently began.
  • The Sentier HII was 90.5 in August 2011, the low point in our household income series, compared to 99.9 in March 2017.

Notes:

Income amounts in this report are before-tax money income and have been adjusted for inflation; income amounts have been seasonally adjusted, unless otherwise noted.

The estimates in this report are based on the Current Population Survey (CPS), the monthly household survey that provides official estimates of the unemployment rate. The CPS samples approximately 50,000 households and 135,000 household members each month. As is the case with all surveys, the estimates are subject to sampling and nonsampling errors. All comparisons made in the report have been tested and found to be statistically significant at the 90-percent confidence level, unless otherwise noted.

Household income is defined as the sum of the incomes of all household members. Income refers to all sources of money income including earnings from work, Social Security, interest, dividends, cash welfare, retirement pensions, unemployment compensation, veterans' benefits, etc. Income excludes capital gains and losses, and lump-sum, one-time amounts. Household income is measured before the payment of federal and state income taxes and Social Security payroll taxes.


>>>>> Scroll down to view and make comments <<<<<<




Permanent link to most recent post on this topic

Click here for Historical Releases Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.






Econintersect Economic Releases








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved