Recent Updates
- US: Consumer Sentiment (Feb-final), Chicago PMI (Feb),Personal Income, Adv Trade & Inventories (Jan)
- US: Consumer Sentiment Detail (Feb-final)
- Canada: Industrial Product Prices (Jan)
- UK: Motor Vehicle Production (Jan)
- more updates...
Economy in Brief
Chicago Business Barometer Declines Sharply in February
The ISM-Chicago Purchasing Managers Business Barometer fell 4.3 points in February to 59.5...
Goods Trade Deficit Widened Slightly in January
The advance estimate of the U.S. trade deficit in goods widened slightly to $83.74 billion in January..
Japan's Industrial Sector Mounts a Comeback
Japan's IP surged in January gaining 4.3% compared to December...
Aircraft Orders Boost U.S. Durable Goods Orders in January
Manufacturers' orders for durable goods increased a much larger-than-expected 3.4% m/m (4.5% y/y) in January...
Kansas City Fed Manufacturing Index Increases Again in February
The Kansas City Fed reported that its manufacturing sector business activity index rose to 24 in February...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller March 10, 2005
The net worth of the US household sector rose 8.8% last quarter versus 4Q03 to a record $48.5 trillion. The gain failed, however, to lift net worth to a new high versus income. In fact the increase lagged the 12.5% rise in net worth during 2003 and the ratio versus disposable income rose only slightly y/y to 5.5 times versus a peak of 6.2 times in 1999.
Household sector asset values rose 9.4% y/y as the value of real estate holdings jumped 12.9%. Financial asset values rose 7.8%, half the gain in 2003 and held back by higher interest rates which reduced the growth in treasury issues to 0.6%. Money market share values fell 9.3% but foreign deposits, checkable deposits and time & savings deposits all soared. Higher prices in the stock market helped lift the value of mutual fund shares by 18.7% and the value of corporate equities held directly rose 2.3%.
Foreign sector holdings of total US assets rose 20.7% y/y raising the foreign sector's ownership share of total US financial assets to a record 12.7% versus 7.0% ten years ago.
Growth in total credit market debt outstanding was steady at 8.2% y/y. The federal government and US households continued growing debt at or about a double digit rate and non-financial corporations' debt grew a lesser 4.8% y/y though it sped up in 4Q.
Individuals' total liabilities rose 10.7% last year, the fastest since 2000, as mortgage debt grew 13.6% and consumer credit rose 4.9%.
Flow of Funds | % of Total | 4Q04 (%, AR) |
3Q04 (%, AR) |
2004 (%, Y/Y) |
2003 (%, Y/Y) |
2002 (%, Y/Y) |
---|---|---|---|---|---|---|
Total Credit Market Debt Outstanding | 9.8% | 8.9% | 8.2% | 8.8% | 7.5% | |
Federal Government | 12% | 9.9% | 8.2% | 9.0% | 10.9% | 7.6% |
Households | 28% | 11.7% | 14.0% | 11.2% | 10.3% | 9.6% |
Nonfinancial Corporate Business | 14% | 9.2% | 4.8% | 4.8% | 3.5% | 0.6% |
Financial Sectors | 33% | 7.9% | 7.6% | 7.3% | 10.4% | 9.3% |
Total Credit Market Assets | 9.8% | 8.9% | 8.2% | 8.8% | 7.5% | |
Household Sector | 6% | 9.8% | 11.7% | 1.0% | 8.1% | -4.7% |
Rest of World | 13% | 21.5% | 14.9% | 20.7% | 14.8% | 16.4% |
US Financial Sectors | 76% | 8.1% | 7.9% | 7.1% | 8.2% | 7.8% |
Net Worth: Households & Nonprofit Organizations (Trillions) | $48.5 | $46.6 | $48.5 | $44.6 | $39.6 | |
Tangible Assets | $22.5 | $22.0 | $22.5 | $20.1 | $18.4 |