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Thursday, June 11, 2015

Household Net Worth Rose by $1.6 Trillion, Savings Rate Jumps to 5.5%

Household net worth increased by $1.6 trillion during the first quarter of 2015 to $84.9 trillion, a 2.0% increase over the fourth quarter and a 5.7% increase from a year ago.



Nonfinancial assets of households and nonprofit organizations increased 1.9% from the previous quarter and 5.7% over the previous year. Real estate values contributed to most of the growth, increasing 2.1% from the previous quarter and 6.3% from the previous year.

Financial assets of households and nonprofit organizations increase 1.6% from the previous quarter and 5.1% from the previous year. The quarterly growth was mainly driven by increases in time and savings deposits, corporate equities, mutual fund shares and pension entitlements.

Household debt increased 2.2% annually to $14.2 trillion (excluding charge-offs of home mortgages). Mortgage debt excluding charge-offs decline 0.3% at an annual rate. Consumer credit climbed, increasing 5.6% from the previous quarter.

The household saving rate jumped to 5.5% in the first quarter, 0.8 percentage points above the fourth quarter 2014 and 0.6 percentage points above the first quarter 2014.

Nonfinancial business debt rose at an annual rate of 6.6%, driven by an increase in corporate bonds and foreign direct investment in the U.S.

Federal government debt decreased at an annual rate of 0.4%, a drop from the positive 5.4% annual rate in the previous quarter. Conversely, state and local government debt rose at an annual rate of 4.8% in the first quarter.

Read the Federal Reserve release.

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