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Average Hourly & Weekly Earnings vs. S&P 500
This chart shows the year-over-year changes in Real (adjusted for inflation) Average Hourly Earnings and Average Weekly Earnings, in relation to the S&P 500. Hourly & Weekly Earnings measure the strength and weakness of the US economy, as well as inflationary wage pressure. Higher Real Earnings lead to stronger retail sales, and possibly higher cash inflows into the stock market. Personal Income data is composited across the entire population, while Hourly and Weekly Earnings measure just the income of employees. This is an important distinction, and both are needed to judge the economy and stock market potential.