Unexpectedly Intriguing!
January 4, 2019

Median household income in the United States rose to $63,554 in November 2018, a 0.5% increase over the Sentier Research's estimate of $63,220 for October 2018. The following chart shows the nominal (red) and inflation-adjusted (blue) trends for median household income in the United States from January 2000 through November 2018. The inflation-adjusted figures are presented in terms of constant November 2018 U.S. dollars.

Median Household Income in the 21st Century: Nominal and Real Estimates, January 2000 to November 2018

2018 has seen a remarkably strong growth trend in median household income in the United States. In both nominal and inflation-adjusted terms, the income earned by the typical American household at the middle of the nation's distribution of income has set new record highs in each of the last eleven months in both nominal and inflation-adjusted terms.

November 2018 saw the year-over-year growth rate of nominal median household income in the U.S. tick down from October 2018's record high value for the monthly data series, which extends back to January 2001.

Median Household Income in the 21st Century: Year Over Year Growth Rate, January 2001 to October 2018

Overall, with just December 2018's data left to be processed to close out the year, it appears that 2018 is set to become one of the best years ever for income gains for typical American households.

Analyst's Notes

Closing out 2018 may be delayed because of the partial government shutdown, should it persist well into January 2019, where the federal agencies that produce the data both Sentier Research analyses and that we use in crafting our alternate estimates are both considered to be non-essential.

Our alternate estimate for median household income in November 2018 is $63,041, which falls within 1% of Sentier Research's Current Population Survey-based estimate for the month. The methodology for the approach we've developed to generate the alternate median household income estimate is described here.

In generating inflation-adjusted portion of the Median Household Income in the 21st Century chart and the corresponding year-over-year growth rate chart above, we've used the Consumer Price Index for All Urban Consumers (CPI-U) to adjust the nominal median household income estimates for inflation, so that they are expressed in terms of the U.S. dollars for the month for which we're reporting the newest income data.

Data Sources

U.S. Bureau of Economic Analysis. Table 2.6. Personal Income and Its Disposition, Monthly, Personal Income and Outlays, Not Seasonally Adjusted, Monthly, Middle of Month. Population. [PDF Document, Online Database (via Federal Reserve Economic Data)]. Last Updated: 21 December 2018.

U.S. Bureau of Economic Analysis. Table 2.6. Personal Income and Its Disposition, Monthly, Personal Income and Outlays, Not Seasonally Adjusted, Monthly, Middle of Month. Compensation of Employees, Received: Wage and Salary Disbursements. [PDF Document, Online Database (via Federal Reserve Economic Data)]. Last Updated: 21 December 2018.

U.S. Department of Labor Bureau of Labor Statistics. Consumer Price Index, All Urban Consumers - (CPI-U), U.S. City Average, All Items, 1982-84=100. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 12 December 2018.

References

Sentier Research. Household Income Trends: January 2000 through May 2017, March 2018 through November 2018. [Excel Spreadsheet with Nominal Median Household Incomes for January 2000 through January 2013 courtesy of Doug Short]. [PDF Document]. Accessed 28 December 2018. [Note: We've converted all data to be in terms of current (nominal) U.S. dollars to develop the analysis presented in this series.]

U.S. Census Bureau. Historical Income Statistics. Table H-5.  Race and Hispanic Origin of Householder--Households by Median and Mean Income:  1967 to 2017. [Excel Spreadsheet]. Accessed 5 December 2018.

Labels:

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button

JavaScript

The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Archives
Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.