WASHINGTON (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. Federal Reserve.
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 bank said.
The Fed is expected to raise borrowing costs later this month in what would be the fourth quarter percentage point increase this year.
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Source: Investing.com
