DELEVERAGING IS OVER: Household Debt Climbs For The First Time Since Q2 2008

shopping, store, woman

Photo: Flickr / Andreas Solberg

The Federal Reserve’s Q4 2011 Flow of Funds Accounts report is out.Household debt climbed by an annual rate of 0.25 per cent in Q4, the first gain since Q2 2008.

Consumer credit grew at an annual rate of 7 per cent, marking the fifth consecutive quarter of increases.  At $2.5 trillion, consumer credit is at its highest level since Q1 2009.

Household net worth climbed $1.2 trillion to $58.5 trillion.

Here’s a historical look at the move in debt:


Photo: Federal Reserve

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at