Average family income fell to $70,700 in 2004

Average family incomes, after adjusting for inflation, fell to $70,700 in 2004, a drop of 2.3% when compared with 2001, Federal Reserve says. That was the weakest showing since a decline of 11.3% from 1989 to 1992, a period that also covered a recession. The average incomes had soared by 17.3% in the 1998-2001 period and 12.3% from 1995 to 1998 as the country enjoyed the longest economic expansion in history. The median family income, the point where half the families made more and half made less, rose a tiny 1.6% to $43,200 in 2004 compared with 2001.