US house­hold wealth jumps $2T, led by ris­ing stock mar­ket

The Saratogian (Saratoga, NY) - - WEATHER -

WASH­ING­TON >> A stock mar­ket rally, which has since re­versed, pro­pelled U.S. house­hold net worth to a record high of $109 tril­lion in the July-Septem­ber quar­ter.

The Fed­eral Re­serve said Thurs­day that the value of Amer­i­cans’ stock and mu­tual fund hold­ings soared $1.2 tril­lion. Home val­ues rose $200 bil­lion. Other as­sets, such as bank ac­counts, also in­creased. To­tal net worth climbed $2 tril­lion from nearly $107 tril­lion in the April-June quar­ter.

Greater house­hold wealth can help the econ­omy by lift­ing con­sumer spend­ing. Yet wealth has been in­creas­ingly con­cen­trated since the Great Re­ces­sion, with just 10 per­cent of U.S. pop­u­la­tion own­ing 84 per­cent of stocks. Richer house­holds are less likely to spend from ad­di­tional wealth com­pared with poorer ones.

The fig­ure re­flects the value of as­sets like homes, bank ac­counts and stocks mi­nus debts like mort­gages and credit cards.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.