US income inequality is finally being addressed, with the latest data showing that average income growth has slowed.
The US economy grew at a 2.5% annual rate in the first quarter of the year, the US Census Bureau reported Friday, but that was a 1.3% drop from the first two quarters of the fiscal year and a 0.6% decline from the same period last year.
This is not a bad result, said Mark Zandi, chief economist at Moody’s Analytics.
He noted that while the overall rate of growth slowed in the second quarter, it still accelerated in the third quarter.
The slow growth in the US economy, coupled with the economic uncertainty, has been a drag on the nation’s long-term economic prospects.
The US economy has been hit by both the financial crisis and the recession, but the pace of economic recovery has been slow.
“This is a positive signal for the economic recovery in the coming months,” Zandi said.
The median household income growth rate in July was 2.4%.
The median US household income grew at an annual rate of 2.3%, according to the Bureau of Economic Analysis.
The latest figures show that the median household net income grew 0.8% in the year.
Income growth has remained low in recent years, as more Americans are relying on benefits to survive.
The number of Americans filing for unemployment benefits has been trending down in recent months, as the economy recovers.
The median net worth of US households dropped to $65,600 in the latest quarter from $70,600 a year ago, according to Zandi.
Zandi estimated that $50,000 of that drop was due to the financial sector.
The recovery has not been a smooth ride for middle-income Americans, with some families struggling to stay afloat.
A number of states, including Florida and Mississippi, have cut food stamps, cutting benefits for many of their residents.
Zanes estimates that more than 8 million families with children under the age of 18 are receiving food stamps in the United States.
For many, the financial hardships have been a source of isolation.
In recent months they have begun to see an influx of tourists who come to visit family in the region.
Zane said that the influx has been positive for the economy.
“A lot of the people that we’ve seen recently, particularly people who have been working hard, they’re finding a lot of support and they’re feeling like they can get through it,” Zanes said.