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Economy in Brief
U.S. Housing Affordability Declines Further in June
The NAR Fixed Rate Mortgage Housing Affordability Index fell 3.6% in June...
EMU Output Makes Solid Gain in June
The European Monetary Union posted a 0.7% increase for industrial output in June...
U.S. Producer Prices Fall During July; Core Increase Weakens
The Producer Price Index for Final Demand fell 0.5% during July...
U.S. Unemployment Claims Continue on an Uptrend
Initial claims for unemployment insurance filed in the week ended August 6 rose 14,000 to 262,000...
RICS Survey Points to More U.K. Housing Sector Weakness
The survey of housing market conditions in the U.K. continues to show strength in prices versus weakness...
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 |