U.S. Outlook: The state of household finances today
Chief Economist
The popular narrative is that households have done a good job of repairing their balance sheets since the Great Recession by paying down debt during the current economic expansion.
But is that really true?
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on June 22.
Key observations:- According to a Federal Reserve report, nominal household debt hit a record high $15.3 trillion in the first quarter of 2018.
- This additional debt has helped support the second longest economic expansion in history.
- Household debt as a share of disposable income has mostly been declining since hitting a high of 133.7% since the fourth quarter of 2007.
- Household debt levels remain quite different by state.
