Household net worth increases in Q3
WASHINGTON (Reuters) - U.S. household wealth rose by $1.2 trillion in the third quarter and household debt contracted at a slower rate than previously, according to Federal Reserve data on Thursday that showed consumers may be ready to resume spending as household finances improve.
Household net worth climbed to $54.9 trillion after falling $1.4 trillion in the second quarter.
The increase, largely due to financial assets such as stocks and mutual fund holdings, comes after a revised drop of $1.4 trillion in the second quarter.
However, the value of household real estate fell for the first time in a number of quarters, reflecting turmoil in the U.S. housing market.
Household debt shrank at an annual rate of 1.7 percent after contracting by 2.2 percent in the second quarter.
It was the slowest pace of household debt consolidation since the first quarter of 2009.
Federal government debt continued to surge, but the expansion at an annual rate of 16 percent was the slowest since the fourth quarter of 2009.
Nonfinancial business debt rose 1.7 percent in the quarter after holding roughly steady over the first half.
(Reporting by Mark Felsenthal; Editing by Andrea Ricci and Jan Paschal)
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