Household Wealth Grows

A report by the Federal Reserve revealed Net Worth for households & individuals climbed $1.2 trillion, or 2%, to $54.9 trillion in the third quarter of 2010.  Americans continue to grow their wealth, even as home values remain stalled.

The report shows that households remain diligent to rebuild their balance sheets throughout Q3. The bulk of the boost to net worth was due to a strong recovery in the equities market in the Q3.  Looking forward, it’s expected net worth will rise further as overall economic activity increases and the employment outlook improves.

Additionally, liabilities fell $7.6 billion in the third quarter, as a $64 billion drop in home mortgages was slightly offset by a $22 billion gain in consumer credit.

Another behind-the-scenes signs that might be driving some of the increased consumer confidence and spending this holiday season – and an opportunistic outlook for 2011.