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- US: Employment Situation (Feb), Intl Trade (Jan)
- US: Establishment Survey Detail (Feb)
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Economy in Brief
U.S. Consumer Credit Outstanding Declines in January
Consumers reduced credit balances further in January...
U.S. Trade Deficit Widens to $68.2 Billion in January
The U.S. trade deficit in goods and services widened to $68.2 billion in January...
German Order Growth Gets Back in Gear Despite the Headwinds
German order growth is back in gear with total orders rising by 1.4% m/m in January...
U.S. Factory Orders & Shipments Rise Again in January
Manufacturing activity is strengthening. Factory orders rose 2.6% (2.8% y/y) in January...
U.S. Initial Unemployment Insurance Claims Rise Just 9,000
Initial claims for unemployment insurance rose modestly by 9,000 to 745,000 in the week ended February 27...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller December 12, 2005
Growth in credit market debt owed by the household sector jumped at a 13.3% rate last quarter, the strongest rate in a year. A 15.5% (13.2% y/y) jump in mortgage obligations lifted the figure but consumer credit also surged at an 8.7% rate (4.2% y/y), the strongest this year. These gains powered overall domestic nonfinancial debt growth to its fastest of the year, 9.8% (9.2% y/y)
Growth in the federal government debt also was firm at 6.9% y/y while non-financial corporations' debt grew a faster 7.7% y/y.
Household sector asset values rose 12.8% y/y due to a 14.1% rise in the value of real estate holdings. Financial asset values rose 9.8% due to a 19.0% rise in the value of mutual fund shares but the value of corporate equities held directly rose just 3.0%.
The net worth of the US household sector in 3Q improved 2.6% (10.9% y/y) to a record $51.1 trillion. The gain lifted net worth to a historic 5.6 times income.
| Flow of Funds | % of Total | 3Q 05 (AR) |
2Q 05 (AR) |
Y/Y | 2004 |
2003 |
2002 |
|---|---|---|---|---|---|---|---|
| Total Credit Market Debt Outstanding | 8.7% | 8.8% | 8.7% | 8.4% | 8.8% | 7.7% | |
| Federal Government | 12% | 6.6% | -3.7% | 6.9% | 9.0% | 10.9% | 7.6% |
| Households | 28% | 13.3% | 12.0% | 10.9% | 11.2% | 10.2% | 9.7% |
| Nonfinancial Corporate Business | 14% | 6.5% | 8.7% | 7.7% | 5.2% | 3.4% | 0.5% |
| Financial Sectors | 32% | 6.1% | 10.7% | 7.5% | 7.5% | 10.1% | 9.2% |
| Net Worth: Households & Nonprofit Organizations (Trillions) | $51.1 | $49.8 | $48.2 | $43.9 | $39.0 | ||
| Tangible Assets | $20.8 | $20.1 | 14.1% | $18.7 | $16.4 | $15.0 |
