CC
Flow of Funds Summary StatisticsFourth Quarter 2008
Debt of the domestic nonfinancial sectors isestimated to have expanded at a seasonally adjustedannual rate of 6¼ percent in the fourth quarter of 2008,almost 2 percentage points less than in the previousquarter. The deceleration was evident in all sectors.For 2008 as a whole, domestic nonfinancial debt rose5¾ percent, about 2¾ percentage points below the 2007pace.Household debt contracted at an annual rate of 2 percent in the fourth quarter, following two quartersof very weak growth. In the fourth quarter, homemortgage debt decreased at an annual rate of 1½percent, while consumer credit decreased at an annualrate of 3¼ percent. In 2008, household debt increased½ percent, 6¼ percentage points less than in theprevious year.Nonfinancial business debt rose at an annualrate of 1¾ percent in the fourth quarter, 2½ percentagepoints less than in the previous quarter. The slowdownwas concentrated in commercial paper, loans, andcommercial mortgage borrowing. The 4¾ percentincrease in nonfinancial business debt in 2008 wasover 8¼ percentage points less than in the previousyear.State and local government debt increased atan annual rate of 1¼ percent last quarter, and expanded2¼ percent over all of 2008. Federal government debtsurged at an annual rate of 37 percent in the fourthquarter, similar to the third-quarter pace. In 2008,federal government debt rose more than 24 percent,after a 5 percent increase in 2007.At the end of the fourth quarter of 2008, thelevel of domestic nonfinancial debt outstanding was$33.5 trillion; household debt was $13.8 trillion,nonfinancial business debt was $11.1 trillion, and totalgovernment debt was $8.6 trillion.Household net worth—the difference betweenthe value of assets and liabilities—was an estimated$51.5 trillion at the end of the fourth quarter of 2008,$5.1 trillion dollars less than in the preceding quarter.For 2008 as a whole, household net worth fell $11.2trillion.
Growth of Domestic Nonfinancial Debt
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1
P
Percentage changes; quarterly data are seasonally adjusted annual rates
Total Households BusinessState andlocal govts.Federal
1999 6.4 8.4 10.8 3.3 -1.92000 5.0 9.1 9.3 1.4 -8.020016.3 9.6 5.8 8.8 -0.220027.3 10.8 2.6 11.1 7.620038.1 11.6 2.5 8.3 10.920048.9 11.2 6.2 7.4 9.020059.5 11.1 8.7 10.2 7.020068.9 10.0 10.5 8.2 3.920078.6 6.6 13.1 9.3 4.920085.8 0.4 4.8 2.2 24.22007:Q18.1 7.0 10.5 10.9 5.5Q28.1 7.2 12.9 10.0 0.3Q39.1 5.9 14.3 7.2 8.0Q48.0 5.6 12.4 7.7 5.32008:Q15.2 3.0 7.2 3.5 8.1Q2 3.1 0.3 5.8 0.9 5.9Q3 8.1 0.2 4.1 3.1 39.2Q4 6.3 -2.0 1.7 1.2 37.01. Changes shown are on an end-of-period basis.
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