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Economy in Brief
German PPI Accelerates
The German year-on-year PPI has generally been decelerating since early 2017...
U.S. Leading Economic Indicators Signal Continued Expansion
The Conference Board's Composite Index of Leading Economic Indicators increased 0.3% during March...
Philadelphia Fed Factory Conditions Improve; Prices Jump
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index rose to 23.2 during April...
U.S. Initial Claims for Unemployment Insurance Are Little Changed
Initial unemployment insurance claims slipped to 232,000 (-6.1% y/y) during the week ended April 14...
U.K. Retail Sales Fall
U.K. GDP is expected to cool its jets when the first quarter GDP number is released...
by Tom Moeller March 9, 2006
Growth in total credit market debt outstanding surged 11.4% (AR) last quarter. Faster growth rates often occur during 4Q but that was the quickest since 2002.
The acceleration from 3Q was due to a jump in Federal Government borrowing at a 10.1% rate (7.0% y/y) versus 6.6% in 3Q.
Growth in household sector borrowing continued strong at a 13.2% rate. That was down from the heated pace of the prior quarter but it capped off the fastest yearly rate of household sector borrowing on record by edging out the 11.5% rate of growth during 2003.
Home mortgage obligations grew at a 14.6% rate (14.1% y/y) last quarter capping the fourth consecutive year of double digit growth. Consumer credit growth slowed substantially to a 4.7% rate from 8.5% during 3Q and the 2.9% yearly rate of growth was the slowest since 1992, likely reflecting mortgage refinancings.
Household sector asset values rose at a 9.8% annual rate (8.5% y/y) during 4Q powered by a 14.0% (14.9% y/y) rise in the value of real estate holdings. Financial asset values rose 8.0% (5.6% y/y) due to an 11.2% (12.9% y/y) rise in the value of mutual fund shares but the value of corporate equities held directly fell 4.4% (-5.0% y/y).
The net worth of the US household sector in 4Q improved 2.3% (8.0% y/y) to a record $52.107 trillion. The gain, however, did not lift net worth as a percentage of income which fell slightly q/q to a still high 5.635 times income. During 2004 that ratio was 5.403 times.
Flow of Funds | % of Total | 4Q 05 (AR) |
3Q 05 (AR) |
Y/Y | 2005 | 2004 | 2003 |
---|---|---|---|---|---|---|---|
Total Credit Market Debt Outstanding | 11.4% | 8.1% | 8.8% | 8.8% | 8.4% | 9.2% | |
Federal Government | 12% | 10.1% | 6.6% | 7.0% | 7.0% | 9.0% | 10.9% |
Households | 28% | 13.2% | 14.3% | 11.7% | 11.7% | 11.2% | 11.5% |
Nonfinancial Corporate Business | 14% | 7.0% | 4.4% | 5.7% | 5.7% | 3.6% | 2.2% |
Financial Sectors | 32% | 11.9% | 3.4% | 7.5% | 7.5% | 7.6% | 10.1% |
Net Worth: Households & Nonprofit Organizations (Trillions) | -- | $52.107 | $50.957 | -- | $52.107 | $48.250 | $44.127 |
Tangible Assets | -- | $25.558 | $24.816 | 13.3% | $25.558 | $22.556 | $20.040 |