Political Calculations' initial estimate of median household income in February 2023 is $80,893, an increase of $453 (or 0.6%) from the initial estimate of $80,440 in January 2023.
Update 31 October 2023: We have revised our estimate of median household income for this month based on new information from the U.S. Census Bureau for 2022 and revisions to income data by the Bureau of Economic Analysis that were released in September 2023. Please follow this link to see how much. If you're interested, we've provided more information about what has changed and why we think its significant.
Adjusted for inflation, the level of median household income in February 2023 represents a $16 increase over January's estimate. Both January and February's estimates fall below December 2022's record peak.
The latest update to Political Calculations' chart tracking Median Household Income in the 21st Century shows the nominal (red) and inflation-adjusted (blue) trends for median household income in the United States from January 2000 through February 2023 The inflation-adjusted figures are presented in terms of constant February 2023 U.S. dollars.
Analyst's Notes
After last month's substantial revisions, the Bureau of Economic Analysis' latest revisions of its aggregate income data were miniscule. The BEA's aggregate wage and salary income estimates were revised downward from October 2022 (-0.002%), November 2022 (-0.003%), December 2022 (-0.078%) and January 2023 (-0.081%).
In March 2023, the Federal Reserve Bank of Atlanta substantially revised its monthly estimates of median household income from December 2013 through December 2022, bringing them more in line with our estimates during much of this period. We'll take a more detailed look at those changes later this month. As a teaser, there's still a big difference in the visible trends between their modeled estimates and ours in the period since March 2021.
Meanwhile, the U.S. Census Bureau conducted the survey for its Annual Social and Economic Supplement (ASEC) of its Current Population Survey (CPS) during March 2023. The Census Bureau's analysts will be assessing that new income data during the next several months. They are expected to release their annual estimate of median household income for 2022 sometime in September 2023.
For the latest in our coverage of median household income in the United States, follow this link!
References
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. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 31 March 2023. Accessed: 31 March 2023.
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. [Online Database (via Federal Reserve Economic Data)]. Last Updated: 31 March 2023. Accessed: 31 March 2023.
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: 14 March 2023. Accessed: 14 March 2023.
Image credit: Household Income by Nick Youngson. Creative Commons 3 - CC BY-SA 3.0 Alpha Stock Images.