WASHINGTON (MNI) – The following is the summary from the report by
the Federal Reserve published Thursday on the flow of funds in the U.S.
for the first quarter of 2010:
Debt of the domestic nonfinancial sectors is estimated to have
expanded at a seasonally adjusted annual rate of 3 1/2 percent in the
first quarter of 2010, 2 1/4 percentage points faster than in the
previous quarter. Private debt contracted again in the first quarter,
while government debt continued to expand at a rapid rate.
Household debt contracted at an annual rate of 2 1/2 percent in the
first quarter, the seventh consecutive quarter of decline. Home mortgage
debt fell at an annual rate of 3 3/4 percent, a significantly faster
decline than in the fourth quarter, while consumer credit contracted at
an annual rate of 1 1/2 percent.
Nonfinancial business debt was flat in the first quarter, after
four consecutive quarters of contraction. Bank loans and commercial
mortgages continued to decline, while corporate bonds and commercial
paper expanded.
State and local government debt expanded at an annual rate of 4 1/4
percent in the first quarter, about the same pace as in the previous
quarter. Federal government debt increased at an annual rate of 18 1/2
percent in the first quarter, significantly faster than in the previous
quarter, but below the pace seen in 2009 as a whole.
At the end of the first quarter of 2010, the level of domestic
nonfinancial debt outstanding was $35.0 trillion; household debt was
$13.5 trillion, nonfinancial business debt was $10.9 trillion, and total
government debt was $10.5 trillion.
Household net worth — the difference between the value of assets
and liabilities — was an estimated $54.6 trillion at the end of the
first quarter, up $1.1 trillion from the end of the fourth quarter of
2009.
** Market News International Washington Bureau: 202-371-2121 **
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