U.S. household net worth rises to $109 trln ahead of stock rout
WASHINGTON, Dec 6 (Reuters) - U.S. households added nearly
$2.1 trillion to their wealth in the three months through
September, a sign that gains in stock markets were probably
supporting consumer spending before a recent market downturn,
Federal Reserve data showed on Thursday.
U.S. household wealth totaled $109 trillion in the third
quarter, the report showed. Much of the gain derived from
increases in corporate equity prices, the Fed said.
Since September, however, the benchmark Standard & Poor's
500 stock index has dropped nearly 10 percent, with investors
worried about a global economic growth slowdown, a U.S.-China
trade war and the prospect of more rate increases from the U.S.
In the July-September period, U.S. household debt rose at a
3.4 percent annual rate, up from a 2.9 percent growth rate in
the second quarter of the year.
The value of corporate equities held directly and indirectly
by households rose by $1.2 trillion during the third quarter,
while the value of real estate rose by $245 billion, the central
The Fed is expected to raise borrowing costs later this
month in what would be the fourth quarter percentage point
increase this year.
(Reporting by Andrea Ricci; Editing by Andrea Ricci)
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