U.S. household wealth above $80 trillion; boosted by stocks, housing

WASHINGTON Thu Mar 6, 2014 11:33pm IST

People stand along Rodeo Drive in Beverly Hills, California, May 21, 2013. REUTERS/Fred Prouser/Files

People stand along Rodeo Drive in Beverly Hills, California, May 21, 2013.

Credit: Reuters/Fred Prouser/Files

Related Topics

WASHINGTON (Reuters) - U.S. household net worth jumped to a new high at the end of last year, as the value of real estate and shareholdings rose and bank accounts swelled.

The Federal Reserve said on Thursday net worth increased $2.95 trillion to $80.66 trillion in the fourth quarter, eclipsing a previous record high.

The value of households' property, consumer goods, bank deposits and stocks all increased in the quarter.

The Fed said household net worth rose 14 percent in the full year, driven by a $5.6 trillion rise in the value of shares and a $2.3 trillion increase in the value of real estate.

The U.S. central bank has used ultra-loose monetary policy to encourage a recovery in the nation's housing market following a severe 2007-2009 recession, which has also helped drive U.S. stocks to record highs.

Increases in housing wealth make it easier for families to borrow against the equity in their homes, while overall wealth gains make consumers feel generally more comfortable spending their money. Many economists think consumers spend a few cents of every dollar they gain in wealth.

Growth in household debt slowed to an annual rate of 0.4 percent in the fourth quarter, from 3.0 percent previously, while home mortgage debt fell. Net debt hit $13.11 trillion.

(Reporting by Krista Hughes; Editing by Paul Simao)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage