Stock gains lift US household wealth to a record
WASHINGTON (AP) — Strong stock market gains and higher home prices boosted Americans' net worth in the April-June period to a record high, a trend that could encourage more spending.
U.S. households also took on the most new debt in five years, driven mostly by student and auto loans. More borrowing can be a sign of confidence, although greater student debt can pose a burden for younger households.
The Federal Reserve says household wealth rose 1.7 percent in the second quarter to $81.5 trillion. Americans' stock and mutual fund portfolios gained $1 trillion. The value of their homes increased $230 billion.
The Fed's figures aren't adjusted for population growth or inflation. Household wealth, or net worth, reflects the value of homes, stocks, and other assets minus mortgages, credit cards and other debts.