Spending Splurge
07/07/2015 |
Household spending should remain healthy for four reasons. First, household net worth hit a record $84.9 trillion in Q1/15, up $1.6 trillion from Q4/14 and the ratio of household net worth/personal disposable income (PDI) is at its highest level since Q3/07. Second, household debt service as a percentage of PDI is 9.92%, its lowest level in over 35 years. Third, job growth remains strong and fourth, wages are finally rising.