US household wealth in the third quarter rose to another record, driven by a stock-market surge and rising property values, figures from the Federal Reserve in Washington shows.
The gain in the value of financial assets reflects a 4% rise last quarter in the Standard & Poor’s 500 Index, which is hovering near a record high this month. Households also benefited as house prices climbed 6.2% in September from a year ago, the most since mid-2014, based on S&P CoreLogic Case-Shiller 20-city data.
The spike in net worth bodes well for the purchasing power of those Americans who own stocks and homes, which will help underpin household spending, the biggest part of the economy. The report also showed companies had an all-time high $2.4trn in liquid assets, up from $2.3trn in the previous quarter and giving them the means to boost investment.
Mortgage borrowing also advanced by 2.7% over the past year, while other forms of consumer credit, including auto and student loans, climbed at a 4.9% annual rate.