The Healthy Consumer

by Laura Ehrenberg-Chesler on September 27, 2018

in Debt,Economic Indicators,Employment,equity market,housing

Today from Ed Yardeni:

“Consumers are sitting pretty these days. Initial claims for state unemployment benefits fell last week to the lowest level since 1969, and the number of people receiving benefits after an initial week of aid fell to the lowest level since 1973.

Household net worth rose to a record $106.9 trillion in Q2, a 2.1% increase from Q1 and the 11th straight quarter of rising US wealth, reported a 9/20 WSJ article (Fig. 3). Households benefited from the rising prices of stocks and real estate, which more than offset the 2% jump in household debt. Consumers have spent roughly the last 10 years paring down their mortgage debt, as a percent of total liabilities, from a peak of 74.0% in Q2-2009 to 64.7% last quarter—which was the lowest percentage since Q1-1988.

This rosy employment and financial situation has boosted spirits: The Consumer Board’s index of consumer confidence rose to 138.4 this month, up from 134.7 in August and not far from the all-time high of 144.7 hit in 2000.”

Leave a Comment

Previous post:

Next post: