US household income fell this summer for the third quarter in a row as stock prices fell.
This is according to the latest report of the Federal Reserve Financial Accounts of the United States, which showed that the total income of households and non-profits in the country fell to $143.3 trillion in the third quarter of this year.
“The value of directly and indirectly held companies decreased by $1.9 trillion and the value of real estate increased by $0.8 trillion,” the report said.
The report showed that household debt rose by an annualized 6.3% in the quarter, while consumer credit grew by an annualized rate of 7%.
The Fed’s findings come at a time when Americans are already pessimistic about the economy, despite what the government says. As we reported last week, many consumers believe that inflation is much worse than what the government said.
About 90% of consumers say that their wages have not kept up with inflation, a PYMNTS study has found, and this lack of purchasing power may explain the big difference between what is being said by Washington and what is being heard by Main Street retailers, which. they are cutting back on spending a lot.
The Fed’s report also arrived during the holiday season when some 40% of Americans plan to use some form of financing — either credit cards or buy now, pay for future programs — to cover their spending, as a recent survey by PYMNTS and LendingClub showed.
Speaking to PYMNTS last month, LendingClub’s Chief Health Officer Anuj Nayar said he saw this as a no-brainer.
“If you’re using credit cards to save money, cut yourself some slack,” Nayar told PYMNTS. “But most people don’t.”
“Credit card debt has skyrocketed. “Credit card rates are going up,” he added. “What the report showed is that, especially for those who are struggling to pay their bills, they’re just about to satisfy their credit card issuers. I think they have $4,500, and they’re at 97%.” of that.”
How Consumers Pay Online With Secured Receipts
Convenience prompts some consumers to keep their payment documents at merchants, while security concerns put other customers first. For the issue of “How We Pay Digitally: Publishing the Archive,” in partnership with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to analyze consumer concerns and reveal how merchants can succeed financially.