-->Domestic nonfinancial debt rose at a
seasonally adjusted annual rate of 7-1/2 percent in the
third quarter of 2004, up a bit from the 7 percent pace
posted in the previous quarter. The pickup in debt
growth reflected faster growth of nonfederal debt,
which was offset in large part by a substantial decline
in the growth of federal debt.
On a seasonally adjusted basis, federal debt
growth fell to an annual rate of 5 percent in the third
quarter, less than half its pace earlier this year. By
contrast, nonfederal debt expanded at an 8 percent
annual rate in the third quarter, up from a 6-1/4 percent
pace in the previous quarter. The acceleration in
nonfederal debt last quarter was broadly distributed
across households, nonfinancial businesses, and state
and local governments.
Household debt expanded at an annual rate of
9 percent in the third quarter, as mortgage debt grew at
an 11-1/4 percent pace and consumer credit rose 6
percent. Debt of nonfinancial businesses increased at a
5 percent annual rate in the third quarter, somewhat
faster than in the previous quarter. Among the
components of nonfinancial business borrowing,
commercial mortgages increased substantially in the
third quarter, and commercial paper outstanding and
bank loans continued to expand.
The seasonally adjusted level of domestic
nonfinancial debt outstanding was $23.6 trillion at the
end of the third quarter of 2004. Debt of nonfederal
sectors was $19.3 trillion and federal debt held by the
public was $4.3 trillion.
<ul> ~ Flow of Funds Accounts of the United States</ul>