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Thursday, December 10, 2015

Household Net Worth Dipped in Third Quarter

Household net worth fell $1.2 trillion during the third quarter of 2015 to $85.2 trillion, a 1.4 percent decrease from the previous quarter but a 2.9 percent increase from a year ago.


Household holdings of nonfinancial assets increased during the third quarter, growing 1.8 percent. The majority of this increase came from real estate holdings, which increased by $482.0 billion. Growth in wealth derived from consumer durable goods slowed, adding $41.7 billion, compared to $69.2 billion in the second quarter.

Household financial assets declined 2.4 percent from the previous quarter but increased 1.2 percent from the previous year. The quarterly decline was driven mostly by a sharp drop in corporate equities, which fell by $1.4 trillion. Funded pension entitlements also declined, falling by $819 billion (4.8 percent), while debt securities increased by $116 billion.

Household nonfinancial debt increased at an annual rate of 1.5 percent in the third quarter, as consumer credit grew 7.2 percent. Mortgage debt grew at a 1.6 percent annual rate. The household savings rate rose to 5.2 percent in the third quarter, up from 5.0 percent in the second.

Nonfinancial business debt rose at an annual rate of 4.7 percent in the third quarter, somewhat smaller than the second quarter’s increase.

Federal government nonfinancial debt increased at a rate of 0.2 percent in the third quarter, down from a rate of 2.4 percent in the second quarter. State and local government nonfinancial debt increased at an annual rate of 1.7 percent, up from a 1.0 percent rate in the second quarter.

Read the Federal Reserve release.
Visit the new Banks and the Economy.

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