Wednesday, 22 of November of 2017

Economics. Explained.  

Consumer Net Worth

June 8, 2017

Consumer net worth rose $2.4 trillion in the fourth quarter.  That works out to an annualized rate of increase of 10.1%.  Over the past year consumer net worth has increased 8.3%.

Net worth declined sharply during the recession but has long since recovered all that was lost and is actually 40.0% higher than it was prior to the recession.  The rebound reflects, in part, the steady increase in stock prices during the course of the past 7 years and in home prices which have been climbing steadily.

This high and climbing level of  net worth should encourage consumers to spend at  roughly a 2.5% pace in the quarters ahead.

Stephen Slifer

NumberNomics

Charleston, SC


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