U.S. household wealth fell for the second straight quarter
from July to September, dropping by $2.2 trillion (4.1
percent) to $57.4 trillion, the Federal Reserve stated in its
flow of funds report. The decline comes to about $7,800 for every
A comparison between the reports of the two straight quarters
suggests that the non-financial debt of the U.S. is on the
At the end of the third quarter of 2011, domestic
non-financial debt outstanding was $37.8 trillion, of which
household debt was $13.2 trillion, non-financial business debt
was $11.5 trillion, and total government debt was $13.1
At the end of the second quarter of 2011, domestic
non-financial debt outstanding was $36.5 trillion, household debt
$13.3 trillion, non-financial business debt just over $11
trillion, and total government debt was $12.2 trillion.
In last three months, the domestic non-financial debt
outstanding increased by $1.3 trillion in the last three
Non-financial business debt rose at an annual rate of 3.5
percent in the third quarter, 1 percent slower than the pace
registered in the second quarter. Corporate bonds
outstanding and business loans increased while commercial
mortgage debt continued to decline.
In the last quarter, non-financial business debt increased at
an annual rate of 4 percent.
Analysts are hoping for a better fourth quarter for the
household net worth as the U.S. stocks have performed well at the
end of the third quarter.
"IHS expects a strong fourth-quarter rebound in household net
worth resulting mostly from a rally in stock prices," Gregory
Daco, principal U.S. economist for IHS Global Insight, wrote in a
"This should provide some support to consumer spending as
employment growth continues to make progress and consumers cheer
up ahead of the holidays," he added.