Household Net Worth in U.S. Increases by $1.3 Trillion
By Victoria Stilwell - Sep 25, 2013
Household wealth in the U.S. increased from April through June, supported by gains in the stock and housing markets that are improving Americans’ finances.
Net worth for households and non-profit groups climbed by $1.34 trillion in the second quarter, or 1.8 percent from the previous three months, to $74.8 trillion, the Federal Reserve said today from Washington in its financial accounts report, previously known as the flow of funds survey.
Climbing stock prices and rising home values have helped ease the sting of higher payroll taxes and across-the-board federal spending cuts this year. Further employment and wage gains, combined with cheaper borrowing costs made possible by the Fed’s record monetary stimulus, may provide more room for improvement in household balance sheets and consumer spending, which makes up 70 percent of the economy.
“We’re clearly now in expansion mode on wealth,” Joseph Lavorgna, chief U.S. economist in New York at Deutsche Bank Securities Inc., said before the report. “Things look a lot better.”
Household net worth is $6.7 trillion above its pre-recession peak of $68.1 trillion reached in the third quarter of 2007. It was $73.5 trillion in the first three months of 2013.
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http://www.bloomberg.com/news/2013-09-25/household-net-worth-in-u-s-increases-by-1-3-trillion.html
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