Median Household Income In April 2023

Political Calculations' initial estimate of median household income in April 2023 is $81,087, a decrease of $253 (or 0.3%) from the initial estimate of $81,340 in March 2023.

The decrease comes as the result of a substantial negative revision to aggregate wage and salary data covering the period from October 2022 through March 2023. Here's how that data changed compared to what the Bureau of Economic Analysis reported a month earlier:

  • Sep-2022: $11,450.6 billion - No change (not revised).
  • Oct-2022: $11,420.4 billion - $ 86.4 billion decrease (-0.75%)
  • Nov-2022: $11,408.7 billion - $144.8 billion decrease (-1.25%)
  • Dec-2022: $11,412.7 billion - $175.0 billion decrease (-1.51%)
  • Jan-2023: $11,516.1 billion - $177.7 billion decrease (-1.52%)
  • Feb-2023: $11,541.8 billion - $185.0 billion decrease (-1.58%)
  • Mar-2023: $11,573.4 billion - $192.2 billion decrease (-1.63%)

We'll have more commentary regarding the downward revision in the Analyst's Notes. 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 April 2023 The inflation-adjusted figures are presented in terms of constant April 2023 U.S. dollars.

Median Household Income in the 21st Century: Nominal and Real Modeled Estimates, January 2000 to April 2023

Overall, we observe median household income is still increasing, but at a slower pace than it was up through September 2022.
 

Analyst's Notes

The effects of the negative revision are more easily seen in our chart tracking the trends for average personal income during the Biden era. Fortunately, because we had just featured this chart in last month's edition of the median household income series, we can use animation to visualize the impact of the changes. In the following animated chart, focus on the nominal income estimates (shown in red) for the months following September 2022:

Animation: Change in Average Individual (Personal) Earned Income During the Biden Era Before and After 26 May 2023 Data Revision

Following the revision, we observe the average nominal income earned by individuals declined during the fourth quarter of 2022. In 2023, that average personal earned income has rebounded but appears to be growing more slowly than it did in the period from December 2021 through September 2022.

After adjusting for the effect of inflation, the average individual earned income has been shrinking since peaking in September 2022. As of April 2023's initial estimate, it has fallen by one percent in real terms.


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: 28 April 2023. Accessed: 28 April 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: 28 April 2023. Accessed: 28 April 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: 12 April 2023. Accessed: 12 April 2023.


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