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Economy in Brief
Chicago Fed National Activity Index Improves in April
The Chicago Fed National Activity Index (CFNAI) rose to 0.47 during April...
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Of these 13 readings eight of them declined on the month in May three of them improved and two of them were unchanged...
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The combination of soaring home prices across the nation and rising interest rates is making homes less affordable...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
Profits & Margins Plunge In Q1: Expect More Margin Contraction As Fed Squeezes Inflation
The Many Links of Inflation Cycle: Hard Landing Is Needed to Crack Them
Peak Inflation and Fed Policy: A Relationship which Should Worry the Fed and Scare Investors
Why Have the Yields on TIPS Been Negative in the Past Two Years?
by Tom Moeller September 17, 2004
The net worth of the US household sector rose 11.1% last quarter versus 2Q03.
On the asset side of the ledger, a 10.8% y/y rise in total assets was driven by a 24.9% jump in the value of mutual fund shares and an 11.8% rise in the value of owner occupied real estate. These gains offset a 12.7% decline in money market shares and a 10.6% decline in the value of Treasury security holdings.
Total liabilities of the household sector rose 9.3% y/y with a notable 11.7% rise in home mortgages. Consumer credit rose 4.0%.
Growth in credit market debt outstanding was steady at 8.0%. The federal government and US households continued to borrow at a double digit rate as nonfinancial corporations only grew their financial liabilities at a 3.2% rate.
Foreign sector holdings of US assets continued to surge, raising the foreign sector's ownership of total US financial assets to 12.4% versus 7.0% ten years ago.
| Flow of Funds (Y/Y Chg.) | % of Total | 2Q04 | 1Q04 | 2003 | 2002 | 2001 |
|---|---|---|---|---|---|---|
| Total Credit Market Debt Outstanding | 8.0% | 8.6% | 8.6% | 7.4% | 7.3% | |
| Federal Government | 12% | 10.6% | 12.7% | 10.9% | 7.6% | -0.2% |
| Households | 27% | 10.0% | 10.6% | 10.5% | 9.6% | 9.0% |
| Nonfinancial Corporate Business | 14% | 3.2% | 3.9% | 3.7% | 0.7% | 5.0% |
| Financial Sectors | 32% | 8.6% | 8.8% | 9.7% | 9.0% | 10.7% |
| Total Credit Market Assets | 8.0% | 8.6% | 8.6% | 7.4% | 7.3% | |
| Household Sector | 6% | 6.4% | 3.1% | 7.2% | -4.5% | -5.8% |
| Rest of World | 12% | 18.5% | 19.3% | 15.9% | 16.4% | 12.6% |
| US Financial Sectors | 77% | 6.8% | 7.7% | 7.9% | 7.6% | 7.9% |
| Net Worth: Households & Nonprofit Organizations (Trillions) | $45.9 | $45.3 | $44.5 | $39.6 | $41.1 | |
| Tangible Assets: Households | $15.7 | $15.3 | $15.0 | $13.6 | $12.4 |
