NEW YORK, Aug. 15, 2017 /PRNewswire/ -- S&P Dow Jones
Indices and Experian released today data through July 2017 for the S&P/Experian Consumer
Credit Default Indices. The indices represent a comprehensive
measure of changes in consumer credit defaults and show that the
composite rate increased one basis point from last month to 0.83%.
The bank card default rate experienced its biggest drop in 12
months, down 18 basis points to 3.31%. Auto loan defaults increased
by four basis points to 0.86%.The first mortgage default rate
increased two basis points from June to 0.62%.
Three of the five major cities saw their default rates decrease
in the month of July. New York had
the largest decrease, down six basis points from June to 0.82%.
Los Angeles reported 0.63% for
July, dropping three basis points from the previous month.
Chicago came in at 0.90%, down one
basis point from June. Dallas
reported an increase of 10 basis points from the previous month to
0.77%. Miami came in at
1.23% for July, up six basis points from June.
Though the National bank card default rate experienced its
biggest drop in 12 months, it is still high. The bank card default
rate set a recent low at 2.49% in December
2015. Since then, it moved irregularly upward before the
July drop; it is now 3.31%. The composite, auto, and first mortgage
default series are all close to their levels in July
2016.
"Default rates for autos and first mortgage loans are at their
lowest points in the last ten years, while bank card defaults
remain modest," says David M.
Blitzer, Managing Director and Chairman of the Index
Committee at S&P Dow Jones Indices. "Consumers' use of credit
is growing and the level of consumer credit outstanding is at an
all-time high. In the year ending June
2017, consumer credit outstanding rose 5.7%, outpacing most
spending categories across the economy. However, retail sales
excluding autos as well as auto sales are down slightly since
April, while home sales are little changed in recent months.
"While total consumer credit is at an all-time high, revolving
credit – principally bank card loans – is close to the same level
as mid-2008 early in the recession and financial crisis. At that
time, revolving credit accounted for 38.5% of credit balances
compared to 26.5% today. The revolving credit share of the total
has declined steadily since 2008. The share of non-revolving credit
rose and total non-revolving climbed from 61.5% to 73.5% of total
consumer credit usage. The largest components of non-revolving
credit are auto loans and student loans. Auto loans currently are
about 40% of non-revolving credit. Student loans are the largest
factor in the growth of non-revolving credit since 2008. Currently,
they represent about 51% of non-revolving credit outstanding and
37.6% of total consumer credit outstanding."
The table below summarizes the July
2017 results for the S&P/Experian Credit Default
Indices. These data are not seasonally adjusted and are not subject
to revision.
S&P/Experian
Consumer Credit Default Indices
|
|
National
Indices
|
|
Index
|
July 2017
Index Level
|
June 2017
Index Level
|
July 2016
Index Level
|
|
|
Composite
|
0.83
|
0.82
|
0.83
|
|
First
Mortgage
|
0.62
|
0.60
|
0.66
|
|
Second
Mortgage
|
0.50
|
0.49
|
0.44
|
|
Bank Card
|
3.31
|
3.49
|
2.92
|
|
Auto Loans
|
0.86
|
0.82
|
0.93
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
|
Data through July
2017
|
|
|
|
|
|
|
|
|
The table below provides the S&P/Experian Consumer Default
Composite Indices for the five MSAs:
Metropolitan
Statistical Area
|
July 2017
Index Level
|
June 2017
Index Level
|
July 2016
Index Level
|
|
|
New York
|
0.82
|
0.88
|
0.77
|
|
Chicago
|
0.90
|
0.91
|
0.89
|
|
Dallas
|
0.77
|
0.67
|
0.69
|
|
Los
Angeles
|
0.63
|
0.66
|
0.63
|
|
Miami
|
1.23
|
1.17
|
1.37
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
|
Data through July
2017
|
|
|
|
For more information about S&P Dow Jones Indices, please
visit www.spdji.com.
ABOUT THE S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES
Jointly developed by S&P Dow Jones Indices LLC and Experian,
the S&P/Experian Consumer Credit Default Indices are published
on the third Tuesday of each month at 9:00
am ET. They are constructed to track the default experience
of consumer balances in four key loan categories: auto, bankcard,
first mortgage lien and second mortgage lien. The Indices are
calculated based on data extracted from Experian's consumer credit
database. This database is populated with individual consumer loan
and payment data submitted by lenders to Experian every month.
Experian's base of data contributors includes leading banks and
mortgage companies, and covers approximately $11 trillion in outstanding loans sourced from
11,500 lenders.
For more information, please visit:
www.consumercreditindices.standardandpoors.com.
ABOUT S&P DOW JONES
INDICES
S&P Dow Jones Indices is the largest global resource for
essential index-based concepts, data and research, and home to
iconic financial market indicators, such as the S&P
500® and the Dow Jones Industrial Average®.
More assets are invested in products based on our indices than
based on any other provider in the world. With over 1,000,000
indices and more than 120 years of experience constructing
innovative and transparent solutions, S&P Dow Jones Indices
defines the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies, and governments to make decisions with confidence. For
more information, visit www.spdji.com.
ABOUT EXPERIAN
Experian is the world's leading global information services
company. During life's big moments – from buying a home or a car,
to sending a child to college, to growing a business by connecting
with new customers – we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organisations to prevent identity fraud and crime.
We have more than 16,000 people operating across 37 countries
and every day we're investing in new technologies, talented people
and innovation to help all our clients maximize every opportunity.
We are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group
FOR MORE INFORMATION:
David Blitzer
Managing Director and Chairman of Index Committee
New York, USA
(+1) 212 438 3907
david.blitzer@spglobal.com
Luke Shane
North America Communications
New York, USA
(+1) 212 438 8184
luke.shane@spglobal.com
Matt Tatham
Experian Public Relations
(+1) 917 446 7227
matt.tatham@experian.com
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