U.S. household wealth rose by $2.19 trillion to a fresh high in the second quarter, boosted by a stock-market rally and higher property values, figures released today by the Federal Reserve show.
As Bloomberg reports, household wealth reflected continued gains in property prices and a 2.9% advance in the S&P 500 Index last quarter after a pullback earlier this year. Stocks have since advanced, trading at a record today. The S&P CoreLogic Case-Shiller 20-city home values index has posted annual gains of at least 6% each month since September 2017.
Increasing net worth, lower taxes and a strong job market are among reasons economists expect consumer spending will remain the driver of growth this year.
The report reflected various revisions, including those that were part of the Commerce Department’s comprehensive update to gross domestic product released in July. The Fed says another change to calculations meant corporate equities are now included as assets of nonfinancial corporations; previously “the sector’s holdings were netted against its outstanding amount of corporate equities.”
