The good news: household income is starting to show some movement.
The bad news: most families are still worse off than they were before the Great Recession.
That’s according to the latest data from Sentier Research, which derives the results from government figures. They found that median annual household income rose 0.6% in April to $54,578. That’s 3% higher than the same month of 2014, and 6.2% higher than Aug. 2011.
However, median income is still 2.9% worse than before the onset of the recession in Dec. 2007.
“Our time series charts clearly illustrate that although the economic recovery officially began in June 2009, the recovery in household income did not begin to emerge until after August 2011,” said Gordon Green of Sentier Research in a statement.
The income is presented before tax but adjusted for inflation.
The data fits with the upward trend in measures of consumer confidence, but also with surveys that still show unease about the broader economy.
A separate Federal Reserve survey released Wednesday showed there was just a 3 percentage point rise, from 62% in 2013 to 65% in 2014, in the number of adults who consider their families to be doing “okay” or living “comfortably.” There was an 8 percentage point gain, from 21% to 29%, in those who expected their income to be higher in a year.
That survey also found that retirement was just a dream for many households — 38% said they either won’t retire or plan to keep working as long as possible.
[by Steve Goldstein, MARKETWATCH Washington Bureau Chief]
As always, posted for your edification and enlightenment by
NORM ‘n’ AL, Minneapolis