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Median Household Income In May 2019

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Includes: DDM, DIA, DOG, DXD, EEH, EPS, EQL, FEX, FWDD, HUSV, IVV, IWL, IWM, JHML, JKD, OTPIX, PSQ, QID, QLD, QQEW, QQQ, QQQE, QQXT, RSP, RWM, RYARX, RYRSX, SCAP, SCHX, SDOW, SDS, SFLA, SH, SMLL, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TNA, TQQQ, TWM, TZA, UDOW, UDPIX, UPRO, URTY, UWM, VFINX, VOO, VTWO, VV
by: Ironman at Political Calculations
Summary

Median household income in the United States dipped slightly to $63,799 in May 2019, a 0.3% decrease from Sentier Research's April 2019 estimate of $64,016.

The year-over-year growth rate for median household income in the U.S. dipped in May 2019, slipping to 3.1% from 4.1% in the previous month in nominal terms.

The changes in median household income in May 2019 are consistent with noise occurring within a trend of slowing growth in the survey data upon which Sentier Research's estimates are based.

Median household income in the United States dipped slightly to $63,799 in May 2019, a 0.3% decrease from Sentier Research's April 2019 estimate of $64,016.

The following chart shows the nominal (red) and inflation-adjusted (blue) trends for median household income in the United States from January 2000 through May 2019. The inflation-adjusted figures are presented in terms of constant May 2019 U.S. dollars.

The year-over-year growth rate for median household income in the U.S. likewise dipped in May 2019, slipping to 3.1% from 4.1% in the previous month in nominal terms, which is shown as the red line in the following chart.

The changes in median household income in May 2019 are consistent with noise occurring within a trend of slowing growth in the survey data upon which Sentier Research's estimates are based.

Analyst's Notes

Our alternate methodology for estimating median household income from data reported by the U.S. Bureau of Economic Analysis would put the figure at $64,100 for May 2019, which is within 0.5% of Sentier Research's estimate for the month.

References

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. Our data sources and other references are provided in the following list.

Sentier Research. Household Income Trends: January 2000 through May 2019. [Excel Spreadsheet with Nominal Median Household Incomes for January 2000 through January 2013 courtesy of Doug Short]. [PDF Document]. Accessed July 2, 2019. [Note: We've converted all data to be in terms of current (nominal) U.S. dollars.]

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: June 12, 2019. Accessed: June 12, 2019.

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: June 28, 2019.

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: June 28, 2019.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.