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U.S. BUREAU OF LABOR STATISTICS Spotlight on Statistics
APRIL 2014
High-income Household Spending And The Economic Recovery
Aaron E. Cobet
In late 2007, the United States fell into a Great Recession. According to the National Bureau of Economic Research the
recession officially ended in June 2009, but it took several more years for average household income and
expenditures to exceed their 2008 levels in nominal terms. The recession lowered household income and consumer
expenditures across all income groups. This Spotlight on Statistics examines trends in income and expenditures and
how unevenly the gains were distributed across socioeconomic groups.
Page 1
U.S. BUREAU OF LABOR STATISTICS Spotlight on Statistics
Income and expenditures have returned to 2008 levels
Average levels of income and expenditures have returned to prerecession levels in nominal dollars, which are not
adjusted for price inflation. In 2011, average household income exceeded the 2008 level. Similarly, in 2012, average
consumer expenditures exceeded 2008 levels.
Page 2
U.S. BUREAU OF LABOR STATISTICS Spotlight on Statistics
Income grew predominantly for the higher income quintiles
While average income has returned to prerecession levels, income gains have been distributed unevenly across
income quintiles. (Income quintiles are five equally sized groups of households that have been divided from lowest to
highest according to their annual income.) Between 2008 and 2012, the highest income quintile accounted for more
than 80 percent of the total increase in household income in the United States. The fourth income quintile also
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