{"id":261864,"date":"2024-10-07T06:38:38","date_gmt":"2024-10-07T06:38:38","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2024\/10\/07\/will-household-wealth-be-a-tailwind-to-consumption-in-2024q3\/"},"modified":"2025-06-25T17:10:57","modified_gmt":"2025-06-25T17:10:57","slug":"will-household-wealth-be-a-tailwind-to-consumption-in-2024q3","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2024\/10\/07\/will-household-wealth-be-a-tailwind-to-consumption-in-2024q3\/","title":{"rendered":"Will Household Wealth Be a Tailwind to Consumption in 2024Q3?"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div id=\"post-54117\">\n\t\t\t\t<!-- .entry-header --><\/p>\n<div class=\"entry-content\">\n<p>Here\u2019s a picture of household net worth, in both nominal and real terms, with my nowcasts for Q3.<\/p>\n<p><a href=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2024\/10\/hhnetworthpix2b.png\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-54119\" src=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2024\/10\/hhnetworthpix2b.png\" alt=\"\" width=\"1080\" height=\"576\" srcset=\"https:\/\/econbrowser.com\/wp-content\/uploads\/2024\/10\/hhnetworthpix2b.png 1080w, https:\/\/econbrowser.com\/wp-content\/uploads\/2024\/10\/hhnetworthpix2b-300x160.png 300w, https:\/\/econbrowser.com\/wp-content\/uploads\/2024\/10\/hhnetworthpix2b-1024x546.png 1024w, https:\/\/econbrowser.com\/wp-content\/uploads\/2024\/10\/hhnetworthpix2b-768x410.png 768w, https:\/\/econbrowser.com\/wp-content\/uploads\/2024\/10\/hhnetworthpix2b-624x333.png 624w\" sizes=\"(max-width: 1080px) 100vw, 1080px\"\/><\/a><\/p>\n<p><em><strong>Figure 1:<\/strong> Household net worth (blue), nowcast for 2024Q3 (blue square), in billions $; real household net worth (tan), nowcast for 2024Q3 (brown triangle), in billions 2022$. NBER defined peak-to-trough recession dates shaded gray. Real net worth deflated using Chained CPI, September value uses Cleveland Fed nowcast as of 10\/6\/2024. Source:\u00a0 Federal Reserve Flow of Funds via FRED, BLS, Cleveland Fed, NBER, and author\u2019s calculations.<\/em><\/p>\n<p>Nominal (real) net worth is nowcasted to rise 2.5%(2.3%) q\/q in Q3.<\/p>\n<p>I generated the nowcast for household net worth by a log-log regression, 2021Q3-2024Q2:<\/p>\n<p><em>worth<\/em> = <strong>14.184<\/strong> + <strong>0.382<\/strong><em>sp500<\/em> + <strong>0.243<\/strong><em>home\u00a0<\/em><\/p>\n<p>Adj-R2 = 0.91, SER = 0.013, DW = 2.22, NObs = 12. Bold face denotes significance at 10% msl, HAC robust standard errors.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<\/p><\/div>\n<p><!-- .entry-content --><\/p>\n<footer class=\"entry-meta\">\n\t\t\tThis entry was posted on <a href=\"https:\/\/econbrowser.com\/archives\/2024\/10\/will-household-wealth-be-a-tailwind-to-consumption-in-2024q3\" title=\"11:08 pm\" rel=\"bookmark\"><time class=\"entry-date\" datetime=\"2024-10-06T23:08:51-07:00\">October 6, 2024<\/time><\/a><span class=\"by-author\"> by <span class=\"author vcard\"><a class=\"url fn n\" href=\"https:\/\/econbrowser.com\/archives\/author\/menzie_chinn\" title=\"View all posts by Menzie Chinn\" rel=\"author\">Menzie Chinn<\/a><\/span><\/span>.\t\t\t\t\t\t\t\t<\/footer>\n<p><!-- .entry-meta -->\n\t<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/econbrowser.com\/archives\/2024\/10\/will-household-wealth-be-a-tailwind-to-consumption-in-2024q3\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Here\u2019s a picture of household net worth, in both nominal and real terms, with my nowcasts for Q3. Figure 1: Household net worth (blue),<\/p>\n","protected":false},"author":1,"featured_media":261865,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[155],"tags":[],"_links":{"self":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/261864"}],"collection":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/comments?post=261864"}],"version-history":[{"count":0,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/posts\/261864\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media\/261865"}],"wp:attachment":[{"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/media?parent=261864"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/categories?post=261864"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/michigandigitalnews.com\/index.php\/wp-json\/wp\/v2\/tags?post=261864"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}