Home ›› 25 Sep 2021 ›› World Biz

US household wealth rose to record $141.7 trillion in Q2

Reuters
25 Sep 2021 00:00:00 | Update: 25 Sep 2021 00:14:00
US household wealth rose to record $141.7 trillion in Q2

US household wealth jumped to a new high of $141.7 trillion at the end of June, a report from the Federal Reserve showed on Thursday, boosted by stock market gains and a pandemic-induced real-estate boom.

Soaring equity markets fueled the increase in overall wealth, adding $3.5 trillion to household assets in the second quarter - a period in which the S&P 500 saw a total return of just over 8.5% after factoring in reinvested dividends.

Rising real estate values added around $1.2 trillion, according to the U.S. central bank’s latest quarterly report on household, business and government financial accounts.

Overall US household wealth rose by $5.9 trillion from the first quarter.

The amount held in household savings deposits fell to $10.6 trillion in the second quarter from $10.8 trillion in the first quarter. Balances in checking accounts rose to $3.6 trillion from $3.3 trillion in the first quarter, the report showed.

The latest snapshot of US household wealth and how it has grown over the coronavirus pandemic shows just how unique the downturn has proven to be. With the help of unparalleled monetary and fiscal policy responses that fortified personal balance sheets and sent asset prices soaring, household wealth has rocketed by $31 trillion – 28 per cent - since the first quarter of 2020, an unprecedented increase.

Much of the support offered to households, including enhanced unemployment benefits or mortgage forbearance, has either ended or will be expiring in the coming months, just as a resurgence in Covid-19 infections is hurting some vulnerable sectors and slowing job growth. The report showed that household debt grew at an annualized rate of 7.9 per cent in the second quarter.

×