The median household income is now at 33.8%. In contrast, the real recovery from the trough has been depressingly slow.
A Closer Look at the Post-Recession Data
Let’s take a closer look at the monthly data since the end of the Great Recession. The chart above highlights the real monthly median values since 2008. The right axis shows the same scale as the previous chart — the percent change from the real household income value at the start of the 21st century. The April 2015 real median annual income is 4.0% below our turn-of-the-century starting point and 4.7% below its interim high in January 2008.
As the excellent data from Sentier Research makes clear, the mainstream U.S. household was struggling before the Great Recession. At this point, real household incomes are in worse shape than they were in mid-2009 when the recession ended.
We’ll close this update with another look at real growth, highlighting the actual monthly data points and adding a three-month moving average. The MA trend has been slowly zigzagging higher since the trough in 2011, which illustrates Gordon Green’s observations in the latest press release.
Check back next month for another update.
This article is brought to you courtesy of Doug Short from Advisor Perspectives.