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February 2018 Median Household Income

Median household income in the U.S. rose to an estimated $59,055 in January 2018, which is up by a rounded 0.3% from our January 2018 estimate of $59,055. The following chart shows our estimates for the trends for both nominal (red) and inflation-adjusted median household income (blue) from January 2000 through February 2018.

In nominal terms, which provide perhaps the best indication of the relative health of the U.S. economy as seen by typical American households, we find that the pace of growth of median household income is continuing the upturn that began in September 2017, following what had been a decelerating trend that had begun back in mid-2014.

After adjusting the monthly nominal household income estimates for inflation so that they are expressed in terms of constant February 2018 U.S. dollars, we also find "real" median household income in recent months ticked slightly downward in the month-over-month change as the rate of consumer price inflation ticked up. The U.S. Bureau of Labor Statistics reported that the most significant contributors to the net price increase were higher prices for shelter, apparel and motor vehicle insurance.

These recent trends are easier to see in the following chart, where we have presented the year-over-year growth rate of median household income in the U.S. in the period from January 2001 through February 2018, which helps to smooth out the month-to-month noise in the inflation data.

In year-over-year terms, we find that the growth rate of median household income continued to rise in February 2018, registering a 2.3% increase over the February 2017. At the same time, the inflation-adjusted rate of growth was slightly positive, indicating that household income growth is outweighing the effects of inflation over this time.

The methodology for the approach we've developed to generate these median household income estimates is

This article was written by

Ironman is the alias of the blogger at Political Calculations, a site that develops, applies and presents both established and cutting edge theory to the topics of investing, business and economics. We should acknowledge that Ironman is either formerly or currently, and quite possibly, simultaneously employed as some kind of engineer, researcher, analyst, rocket scientist, editor and perhaps as a teacher of some kind or another. The scary thing is that's not even close to being a full list of Ironman's professions and we should potentially acknowledge that Ironman may or may not be one person. We'll leave it to our readers to sort out which Ironman might behind any of the posts that do appear here or comments that appear elsewhere on the web!

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