Global| Sep 21 2005Households' Net Worth Improved Further in 2Q
by:Tom Moeller
|in:Economy in Brief
Summary
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 [...]
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 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
