Bar chart shows consumer balance sheet by category. Table shows balance sheet figures for Q2 2022.
|Category||Dollars (in trillions)|
|Durable goods and other nonfinancial assets||8.45|
Line chart measures household debt service. Y-axis: Debt payment as % of disposable personal income; X-axis, 1980 – 2022. Household debt reached three peaks during the period, at more than 12% in 1986/87, more than 12.6% in December 2001, and a high of about 13.2% in December 2007. With the recession of 2008, household debt plunged to less than 10% by December 2012 and remained at roughly that level through June 2020, when it dropped again to 8.8%, ending the year at 9.4% and Q4 2021 at about 9.3%. It was 9.6% in Q2 2022.
Line chart shows increase in household net worth. Y-axis, net worth ($, trillions); X-axis 1990 – 2022. Net worth increases from $21.7 trillion in 1991 to $118.6 trillion by year-end 2019. By the end of Q1 2020 it had fallen to $111.4 trillion and by the end of 2020 it had increased to roughly $130.4 trillion. By the end of 2021 it had risen still further to over $150 trillion, and by Q2 2022 about $144 trillion.
Sources: Bloomberg, Federal Reserve Board, and Wells Fargo Investment Institute. Consumer balance sheet data as of June 30, 2022. Household debt service ratio and household net worth: quarterly data from January 1, 1980 to June 30, 2022.
- Overall, consumer finances are holding up better than they did during the Global Financial Crisis, despite recent declines in stock and bond prices. Support has come from ample savings, rising home values, and respectable gains in earned income.
- Overall strength among working households, particularly those with high incomes, has masked financial distress among families in lower income groups pressured by the squeeze on households’ inflation-adjusted incomes.