G.19 CONSUMER CREDIT For release at 3 p.m. (Eastern Time) 1 July 2004 September 8, 2004 Consumer credit increased at an annual rate of 2-1/4 percent in the second quarter of 2004. Revolving credit contracted and nonrevolving credit posted a moderate gain. In July, consumer credit increased at an annual rate of about 6-1/2 percent. CONSUMER CREDIT OUTSTANDING 1 Seasonally adjusted --------------------------------------------------------------------------------------------------------------------------------------- 2003 2004 _______________________ _______________________________________ 1999 2000 2001 2002 2003 Q2 Q3 Q4 Q1 r Q2 r May r Jun r Jul p --------------------------------------------------------------------------------------------------------------------------------------- Percent change at annual rate 2,3 Total 7.6 10.6 8.0 4.2 4.3 5.2 5.3 2.2 6.3 2.2 2.7 2.6 6.4 Revolving 4.0 11.4 6.6 1.4 2.1 0.7 2.5 1.8 5.5 -3.1 -1.0 -0.2 9.0 Nonrevolving 4 10.1 10.1 9.0 5.9 5.6 8.0 6.9 2.4 6.7 5.3 4.8 4.1 5.0 Amount: billions of dollars Total 1519.9 1692.6 1828.8 1905.0 1986.7 1949.9 1975.7 1986.7 2017.8 2029.0 2024.7 2029.0 2039.9 Revolving 597.1 665.2 708.9 719.1 734.1 726.1 730.7 734.1 744.2 738.5 738.6 738.5 744.1 Nonrevolving 4 922.8 1027.4 1119.9 1185.9 1252.6 1223.8 1245.0 1252.6 1273.6 1290.5 1286.1 1290.5 1295.9 --------------------------------------------------------------------------------------------------------------------------------------- TERMS OF CREDIT AT COMMERCIAL BANKS AND FINANCE COMPANIES 5 Percent except as noted: not seasonally adjusted --------------------------------------------------------------------------------------------------------------------------------------- Institution, terms, and type of loan --------------------------------------------------------------------------------------------------------------------------------------- Commercial banks Interest rates 48-mo. new car 8.44 9.34 8.50 7.62 6.93 7.05 6.75 6.82 6.72 6.47 6.47 n.a. n.a. 24-mo. personal 13.39 13.90 13.22 12.54 11.95 12.19 11.95 11.97 11.88 11.80 11.80 n.a. n.a. Credit card plan All accounts 15.21 15.71 14.89 13.43 12.74 12.90 12.49 12.36 12.66 12.68 12.68 n.a. n.a. Accounts assessed interest 14.81 14.91 14.44 13.09 12.92 12.82 13.11 12.91 12.41 12.93 12.93 n.a. n.a. New car loans at auto finance companies Interest rates 6.66 6.61 5.65 4.29 3.40 2.61 3.55 3.80 3.24 3.65 3.32 4.02 5.25 Maturity (months) 52.7 54.9 55.1 56.8 61.4 61.1 63.0 62.5 59.7 60.2 60.2 60.6 60.9 Loan-to-value ratio 92 92 91 94 95 97 94 94 94 92 92 91 89 Amount financed (dollars) 19,880 20,923 22,822 24,747 26,295 27,468 25,733 26,493 26,470 25,525 25,854 24,804 23,821 --------------------------------------------------------------------------------------------------------------------------------------- This release is issued around the fifth business day of each month. The exact date and time may be obtained by calling (202) 452 - 3206. Footnotes appear on reverse. 1 CONSUMER CREDIT OUTSTANDING (Billions of dollars) Not seasonally adjusted --------------------------------------------------------------------------------------------------------------------------------------------- 2003 2004 _______________________ _______________________________________ 1999 2000 2001 2002 2003 Q2 Q3 Q4 Q1 r Q2 r May r Jun r Jul p --------------------------------------------------------------------------------------------------------------------------------------------- Total 1550.2 1726.5 1865.2 1942.6 2025.5 1940.0 1977.5 2025.5 2005.3 2018.6 2015.8 2018.6 2027.1 Major holders Total 1550.2 1726.5 1865.2 1942.6 2025.5 1940.0 1977.5 2025.5 2005.3 2018.6 2015.8 2018.6 2027.1 Commercial banks 499.8 541.5 558.4 587.2 636.4 584.2 593.7 636.4 624.7 625.8 632.7 625.8 626.6 Finance companies 201.6 220.5 238.1 237.8 295.4 244.3 284.0 295.4 307.4 324.7 320.1 324.7 329.3 Credit unions 167.9 184.4 189.6 195.7 205.9 198.9 203.4 205.9 207.6 212.9 210.0 212.9 216.0 Federal government and Sallie Mae 84.7 104.0 119.5 129.6 114.6 120.4 122.5 114.6 109.8 94.8 99.8 94.8 94.5 Savings institutions 61.7 64.8 71.1 68.7 77.9 73.8 72.7 77.9 81.5 88.4 86.1 88.4 89.2 Nonfinancial business 86.0 90.0 88.8 86.5 70.3 75.1 74.7 70.3 62.1 62.4 63.5 62.4 61.9 Pools of securitized assets 6 448.4 521.3 599.7 637.1 625.0 643.3 626.6 625.0 612.3 609.6 603.6 609.6 609.6 Major types of credit 7 Revolving 621.1 691.7 737.0 747.5 763.1 725.5 726.1 763.1 736.3 737.9 737.9 737.9 741.2 Commercial banks 189.4 218.1 224.9 231.0 260.1 217.5 215.5 260.1 243.3 248.7 251.7 248.7 250.1 Finance companies 32.5 37.6 31.5 38.9 37.6 34.6 37.3 37.6 37.6 39.9 37.7 39.9 41.4 Credit unions 20.6 22.2 22.3 22.2 22.4 21.1 21.3 22.4 21.5 21.5 21.3 21.5 21.7 Federal government and Sallie Mae n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Savings institutions 15.4 16.6 17.9 16.3 23.8 19.1 19.5 23.8 21.9 23.2 22.8 23.2 22.3 Nonfinancial business 48.5 49.8 50.6 48.8 26.5 36.4 35.9 26.5 20.7 21.0 21.8 21.0 20.4 Pools of securitized assets 6 314.8 347.4 389.7 390.3 392.7 396.8 396.5 392.7 391.2 383.7 382.7 383.7 385.4 Nonrevolving 929.1 1034.8 1128.2 1195.0 1262.5 1214.5 1251.4 1262.5 1269.0 1280.6 1277.9 1280.6 1285.9 Commercial banks 310.4 323.4 333.5 356.2 376.4 366.7 378.1 376.4 381.4 377.1 381.0 377.1 376.6 Finance companies 169.2 182.9 206.6 198.8 257.8 209.6 246.7 257.8 269.8 284.8 282.5 284.8 288.0 Credit unions 147.3 162.2 167.3 173.5 183.5 177.8 182.1 183.5 186.1 191.4 188.7 191.4 194.2 Federal government and Sallie Mae 84.7 104.0 119.5 129.6 114.6 120.4 122.5 114.6 109.8 94.8 99.8 94.8 94.5 Savings institutions 46.3 48.2 53.2 52.4 54.0 54.6 53.2 54.0 59.5 65.2 63.4 65.2 66.9 Nonfinancial business 37.5 40.2 38.2 37.7 43.8 38.7 38.7 43.8 41.3 41.5 41.7 41.5 41.5 Pools of securitized assets 6 133.6 173.9 209.9 246.8 232.3 246.6 230.1 232.3 221.1 225.8 220.9 225.8 224.3 1. Covers most short- and intermediate-term credit extended to individuals, excluding loans secured by real estate. revised from January 1998 forward as a result of new seasonal factors. 2. The series for consumer credit outstanding and its components may contain breaks that result from discontinuities in source data. Growth rates are adjusted to exclude the effect of such breaks. 3. Percent changes are at a simple annual rate and are calculated from unrounded data. 4. Comprises automobile loans and all other loans not included in revolving credit, such as loans for mobile homes, trailers, or vacations. These loans may be secured or unsecured. 5. Interest rates are annual percentage rates (APR) as specified by the Federal Reserve's Regulation Z. Interest rates for new-car loans and personal loans at commercial banks are simple unweighted averages of each bank's most common rate charged during the first calendar week of the middle month of each quarter. For credit card accounts, the rate for all accounts is the stated APR averaged across all credit card accounts at all reporting banks. The rate for accounts assessed interest is the annualized ratio of total finance charges at all reporting banks to the total average daily balances against which the finance charges were assessed (excludes accounts for which no finance charges were assessed). Finance company data are from the subsidiaries of the three major U.S. automobile manufacturers and are volume-weighted averages covering all loans of each type purchased during the month. 6. Outstanding balances of pools upon which securities have been issued; these balances are no longer carried on the balance sheets of the loan originators. 7. Includes estimates for holders that do not separately report consumer credit holding by type. r=revised. p=preliminary.