So far the U.S. economy in 2013 is a mix of contradictions. In January, incomes decreased 3.6%, the largest monthly drop in 20 years. But less money coming in didn’t cause a corresponding drop in consumer spending. Rather, household purchases increased 0.2% in January after a 0.1% gain during the previous month. The savings rate, on the other hand, slipped to 2.4%, the lowest since November 2007.

Meanwhile, the stock market is going strong, with the Dow Jones Industrial Average setting record highs three days in a row, on Tuesday, Wednesday and Thursday. The Dow has more than doubled from its low point in March 2009, helping creating the third strongest bull market since World War II. However Standard & Poor’s and the Nasdaq Composite Index are still below their highs.

And, as previously reported, the improved economy has barely touched the majority of Americans. Unemployment has not gone done significantly, and the percentage of corporate income going to employees, 61.7%, is close to the lowest it’s been since 1966.

-David Wallechinsky, Noel Brinkerhoff

To Learn More:

Consumer Spending in U.S. Climbs Even as Taxes Hurt Incomes (by Michelle Jamrisko, Bloomberg)

Dow Hits Record High: Here's Why It Doesn't Matter (by Mark Gongloff, Huffington Post)

“Golden Age” for Corporate Profits as Aid to Poor Hit by Budget Cuts (by Noel Brinkerhoff and David Wallechinsky, AllGov)