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Economy in Brief
U.S. Consumer Credit Outstanding Declines in January
Consumers reduced credit balances further in January...
U.S. Trade Deficit Widens to $68.2 Billion in January
The U.S. trade deficit in goods and services widened to $68.2 billion in January...
German Order Growth Gets Back in Gear Despite the Headwinds
German order growth is back in gear with total orders rising by 1.4% m/m in January...
U.S. Factory Orders & Shipments Rise Again in January
Manufacturing activity is strengthening. Factory orders rose 2.6% (2.8% y/y) in January...
U.S. Initial Unemployment Insurance Claims Rise Just 9,000
Initial claims for unemployment insurance rose modestly by 9,000 to 745,000 in the week ended February 27...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller September 21, 2005
In 2Q, the net worth of the US household sector improved 1.9% (9.4% y/y) to a record $49.8 trillion. The gain lifted net worth not to a historical high versus income, but the highest in four years (5.5 times).
Household sector asset values rose 9.7% y/y due to a 13.8% rise in the value of real estate holdings. Financial asset values rose 7.1%, still half the gain in 2003 and held back by higher interest rates which reduced the growth in Treasury security holdings to a negative 2.2% y/y. Money market share values also fell by 4.8%. Higher prices in the stock market helped lift the value of mutual fund shares by 14.0% but the value of corporate equities held directly fell 1.9%.
Growth in total credit market debt outstanding moved slightly higher to 8.5% y/y. Growth in the federal government debt slowed a bit to 7.3% y/y but US household debt growth continued strong at 10.6% y/y while non-financial corporations debt grew a faster 6.9% y/y.
Flow of Funds | % of Total | 2Q 05 (AR) |
1Q 05 (AR) |
2004 |
2003 |
2002 |
---|---|---|---|---|---|---|
Total Credit Market Debt Outstanding | 7.9% | 7.3% | 8.2% | 8.9% | 7.7% | |
Federal Government | 12% | -3.7% | 15.9% | 9.0% | 10.9% | 7.6% |
Households | 28% | 10.6% | 9.7% | 11.1% | 10.4% | 9.8% |
Nonfinancial Corporate Business | 14% | 7.3% | 6.4% | 4.8% | 3.3% | 0.6% |
Financial Sectors | 32% | 9.0% | 4.7% | 7.3% | 10.3% | 9.2% |
Net Worth: Households & Nonprofit Organizations (Trillions) | $49.8 | $48.9 | $48.3 | $44.1 | $39.1 | |
Tangible Assets | $23.9 | $23.2 | $22.5 | $20.0 | $18.4 |