Americans’ household wealth rose by $3.0 Trillion in the first quarter of 2023, it rose to $148.8 trillion. Stock prices have been rebounding after they fell sharply off record highs two years ago after the Federal Reserve began talking of QT and raising rates to combat inflation. Global economy slackness from the Russian invasion of Ukraine and Chinese Covid lockdowns also impacted asset prices negatively. Household debt rose 2.2 percent at an annual rate in the first quarter of 2023. Consumer credit grew at an annual rate of 4.3 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 2.5 percent.
HIGHLIGHTS OF US HOUSEHOLD WEALTH REPORT (1Q23)
From the Federal Reserve’s financial accounts report, previously known as the flow of funds survey.
Balance Sheet of Households and Nonprofit Organizations, 1952 – 2023
- First-quarter household net worth rose $3 trillion
- Stock gains added $2.4 trillion.
- Household assets in money markets rose by $300 billion to record $3.3 trillion
- Real estate declined by $600 billion for the 3rd straight quarterly decline.
- Household debt is up by 2.2%
- Government debt rises 4.5% in Q1
- Business debt up 3.8% in Q1
The Q1 US household net worth rose to US$148.8 trillion.
- The net worth of households and nonprofits rose to $148.8 trillion during the first quarter of 2023. The value of directly and indirectly held corporate equities increased $2.4 trillion and the value of real estate decreased $0.6 trillion.
Household Debt Balances
- Domestic nonfinancial debt outstanding was $69.5 trillion at the end of the first quarter of 2023, of which household debt was $19.2 trillion, nonfinancial business debt was $20.0 trillion, and total government debt was $30.4 trillion.
- Domestic nonfinancial debt expanded 3.5 percent at an annual rate in the first quarter of 2023, up from an annual rate of 3.2 percent in the previous quarter.
- Household debt increased 2.2 percent at an annual rate in the first quarter of 2023. Consumer credit grew at an annual rate of 4.3 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 2.5 percent.
- Nonfinancial business debt rose at an annual rate of 3.8 percent in the first quarter of 2023, up from a 3.4 percent annual rate in the previous quarter.
- Federal government debt increased 4.5 percent at an annual rate in the first quarter of 2023, up from a 4 percent annual rate in the previous quarter.
- State and local government debt expanded at an annual rate of 1.2 percent in the first quarter of 2023, after contracting at an annual rate of 5.2 percent in the previous quarter.
The solid job market has sustained Americans purchasing power, sustaining household spending which is the largest component of the U.S. economy despite rising inflation.
Source: Federal Reserve
From The Traders Community News Desk