4.2% Income Growth from 2017 Required to Keep Up in Growing US Economy
Sunday August 12, 2018

Based upon the US Government’s “advance” estimate of Q2 2018 GDP, StayingEven.com’s initial estimate of the 2018 Q2 Staying Even Index (SEI) is 4.6%, with a Q2 YTD index reading of 4.2%.

This reading is significantly higher than the reported 2.9% year on year increase in the average consumer price index (CPI) in Q2, demonstrating that wages that increase with inflation/COLA are not sufficient to keep up in the growing U.S. economy. The YTD 4.2% increase in the Staying Even Index (SEI) is based upon reported Q2 YTD nominal year on year GDP growth of 5.0% and population growth of 0.7%.  

These projections suggest that individuals whose YTD Q2 2018 total income from all sources grew by more than 4.2% from 2017 expanded their adjusted share of the U.S. economy, and those whose total income grew by less than this fell behind compared to the prior year.  The SEI has accelerated in 2018; SEI growth for calendar year 2017 was 3.4%.  

The US Department of Commerce also released in July its periodic comprehensive update of prior GDP estimates.  The result of this is a downwards revision of Q1 2018 growth in the SEI, from the previously reported 4.0%, to 3.8%.

StayingEven.com will publish updates to these figures as GDP and population estimates are revised.  We are dedicated to helping individuals understand what income growth is required to keep up in the U.S. Economy. 

##

To find out whether you have gotten ahead, try our Staying Even Calculator, and to learn more about the Index, visit us at StayingEven.com.  You can also follow us @stayingeven on Twitter.