Fed Says Total U.S. Household Net Worth Rose in Second Quarter
September 21 2017 - 1:04PM
Dow Jones News
By Eric Morath
The total net worth of U.S. households pushed further into
record territory, climbing by $1.7 trillion in the second quarter
of 2017, to $96.2 trillion.
The increase reflected rising values of stocks and homes, but
the gain was smaller than the $2.3 trillion advance in the first
quarter, according to the data the Federal Reserve released
Thursday.
Household wealth in the stock market climbed by $1.1 trillion in
the second quarter. While a slightly smaller increase than in the
first quarter, the improvement still reflected a steady upward
trend in equities prices supported by solid business and consumer
confidence and broad economic growth around the globe.
The value of real estate rose by $564 billion last quarter, a
better gain than the prior quarter, showing that home prices are
rising at time when demand for housing is high and unemployment is
low.
The sum Americans held in savings accounts and in bonds fell
slightly in the quarter.
Overall assets rose by 1.8 trillion last quarter. That was
partly offset by a $146 billion increase in household debt.
The figures are from a quarterly Fed report, known as the Flow
of Funds, which tracks the aggregate wealth of all U.S. households
and nonprofit organizations.
During the 2007-09 recession, when the housing market and stock
market both fell, households lost nearly $12 trillion in wealth.
But net worth fully recovered by the second half of 2012, and has
risen most quarters since.
The data reflects the average net worth of U.S. households
exceeds $750,000. The report provides no details of how that wealth
is distributed between households. The figures aren't adjusted for
inflation.
Write to Eric Morath at eric.morath@wsj.com
(END) Dow Jones Newswires
September 21, 2017 12:49 ET (16:49 GMT)
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