U.S. house­hold in­come rose over 5% in 2015, near­ing pre-re­ces­sion lev­els

Financial Mirror (Cyprus) - - FRONT PAGE -

The U.S. Cen­sus has now re­leased much data on house­hold in­come, poverty, health in­sur­ance and other key data for 2015 ver­sus 2014. That data may still be some­what in­com­plete, with so many tax re­turns still out­stand­ing be­fore the Oc­to­ber 15 dead­line. Still, the good news here is that house­hold in­come posted a sharp rise in 2015.

Tues­day’s data dump from the Cen­sus in­cluded one very key point that econ­o­mists, in­vestors, con­sumers and even mem­bers of the Fed­eral Re­serve should cheer. Me­dian house­hold in­come in the United States in 2015 was $56,516. In real terms, this rep­re­sented a 5.2% gain from the $53,718 me­dian house­hold in­come of $53,718 from 2014.

An­other pos­i­tive is that this marked the first real an­nual in­crease in me­dian house­hold in­come since 2007. Other data was shown as well: - The of­fi­cial poverty rate was 13.5% in 2015, down 1.2 points and down 3.5 mil­lion (with 43.1 mil­lion peo­ple in poverty). That was the largest an­nual per­cent­age point drop in poverty since 1999.

- Real me­dian in­comes of $72,165 in 2015 for fam­ily house­holds and $33,805 for non­fam­ily house­holds were up 5.3% and 5.4%, re­spec­tively, ver­sus me­dian data from 2014.

- The of­fi­cial poverty rate in 2015 was 13.5%, down 1.2 per­cent­age points from 14.8% in 2014, but 2015’s poverty rate was 1.0 per­cent­age point higher than in 2007 right be­fore the Great Re­ces­sion.

- The real me­dian in­come of house­holds main­tained by a for­eign­born per­son in­creased by 5.3% while the me­dian in­come of house­holds main­tained by a na­tive-born per­son in­creased 4.4% from 2014 to 2015.

This does rep­re­sent good news. Still, it is not back to be­fore the re­ces­sion. The Cen­sus re­port said:

Real me­dian house­hold in­come in 2015 was 1.6% lower than in 2007, the year be­fore the most re­cent re­ces­sion, and 2.4% lower than the me­dian house­hold in­come peak that oc­curred in 1999. The dif­fer­ence be­tween the 1.6% change and the 2.4% change was not sta­tis­ti­cally sig­nif­i­cant. (Source: 24/7 Wall St.com)

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