U.S. Household Net Worth Rises in 4th Quarter on Higher Stock, Home Values
By Harriet Torry
The total net worth of U.S. households rose to nearly $100 trillion during the final quarter of 2017, as buoyant stock markets and rising property prices boosted Americans' wealth.
The increase on the quarter was $2.076 trillion, bringing household net worth to $98.746 trillion, according to data the Federal Reserve released Thursday. That was a larger gain than the revised $1.645 trillion advance in the third quarter of last year.
Household wealth in the stock market climbed by $1.346 trillion in the quarter, reflecting rising equity valuations last quarter amid solid business and consumer confidence and a strong labor market.
American households increased their borrowing in the fourth quarter, although rising asset valuations led to the gain in net worth. Households debts rose at an annual rate of 5.2% in the fourth quarter, with liabilities increasing by $208.6 billion, according to a quarterly Fed report, known as the flow of funds, which tracks the aggregate wealth of all U.S. households and nonprofit organizations. Nonprofits make up a relatively small proportion of household wealth.
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(END) Dow Jones Newswires
March 08, 2018 12:15 ET (17:15 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.