The Reinwasser Middle-Class Index (RMCI) was built to more accurately measure the month-to-month improvement or deterioration in the economic health of the middle-class.  The RMCI captures data in the Jobs, Housing, Wealth & Spending, Confidence and Inflation categories and compares current data to the average over the previous four months*.  If a data point is better than the four-month average it's scored +1, if it's worse it's scored -1.  As such, RMCI scores range from +10 to -10.  For a more robust explanation of the RMCI, click here.

June 2011 Results

The RMCI fell to -2 in June. The RMCI has not been positive since November 2010.

Positive Categories:
  • Gallup US Job Creation
  • Gallup Underemployment Index
  • 30 Year Conventional Mortgage Rate
  • Change in Consumer Prices Relative to Change in Average Hourly Earnings
Negative Categories:
  • Zillow Home Value Index - Single Family Homes
  • S&P 500
  • Gallup U.S. Lower & Middle-Income Consumer Spending - Adj. for Inflation
  • Conference Board Consumer Confidence Index
  • NFIB Small Business Index
  • US Dollar Index
The June RMCI suggests that the middle-class continues to struggle economically.  For the first time since August 2010, stock prices dropped below their four-month average.  In addition, home prices fell for the 59th consecutive month and both confidence indicators were negative for the second month in a row.  On the positive side, employment opportunities are clearly more abundant as both job indicators improved for the second month in a row.  On a somewhat ambiguous note, average hourly earnings relative to consumer prices improved but only because consumer prices dropped by a greater amount than hourly earnings.


*Gallup Lower & Middle-Income Spending, Adjusted for Inflation and Change in Average Hourly Earnings Relative to Change in Consumer Prices (CPI), are scored differently.