NEW YORK, July 18, 2017 /PRNewswire/ -- S&P Dow Jones
Indices and Experian released today data through June 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 dropped four basis points from last month to 0.82%.
The bank card default rate experienced its first drop in nine
months with four basis points to 3.49%. Auto loan defaults
decreased three basis points from the previous month to 0.82%, and
the first mortgage default rate dropped four basis points from May
to 0.60%.
Three of the five major cities saw their default rates decrease
in the month of June. New York had
the largest decrease, down 13 basis points from May to 0.88%.
Miami reported 1.17% for June,
dropping 12 basis points from the previous month. Chicago came in at 0.91%, down six basis
points from May. Dallas and
Los Angeles both remain unchanged
from last month at 0.67%, and 0.66% respectively.
Although the National bank card default rate experienced its
first drop in nine months, it is still high. When comparing the
bank card default rate among the four census divisions, the default
rate in the South is considerably higher than the other three
census divisions. The East South Central Census Region – comprised
of Kentucky, Tennessee, Alabama, and Mississippi – has the highest bank card
default rate. As per Bureau of Labor Statistics, these states have
some of the lowest median household
income.
"The economic expansion started in June
2009 and just passed its eighth anniversary," says
David M. Blitzer, Managing Director
& Chairman of the Index Committee at S&P Dow Jones Indices.
"For most of those eight years, the consumers, politicians and
business people expected bubbles, rampant inflation and budget
crises. None of these fears were realized. Inflation is one to two
percent, debt service levels are close to record lows. Disposable
income is growing and supporting spending growth. Based on national
averages, consumers are in good financial shape. Consumer credit
defaults across mortgages, bank cards and auto loans are at levels
similar to those before the financial crisis.
"While nationally overall consumers' financial condition is
good, there are regional variations as shown by the charts.
Regional patterns show that household income is one determinant of
bank card default rates. The continuing decline in the unemployment
rate and rising employment have not created any upward pressure on
wages and salaries. Wage growth is about 2%-3% annually, barely
enough to stay ahead of inflation. Additional improvements in the
economy, both nationally and regionally, are needed to push bank
card default rates lower."
The table below summarizes the June
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
|
June 2017
Index Level
|
May 2017
Index Level
|
June 2016
Index Level
|
|
|
Composite
|
0.82
|
0.86
|
0.82
|
|
First
Mortgage
|
0.60
|
0.64
|
0.65
|
|
Second
Mortgage
|
0.49
|
0.54
|
0.48
|
|
Bank Card
|
3.49
|
3.53
|
3.11
|
|
Auto Loans
|
0.82
|
0.85
|
0.91
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
|
Data through June
2017
|
|
|
|
|
|
|
|
|
The table below provides the S&P/Experian Consumer Default
Composite Indices for the five MSAs:
Metropolitan
Statistical Area
|
June 2017
Index Level
|
May 2017
Index Level
|
June 2016
Index Level
|
|
|
New York
|
0.88
|
1.01
|
0.83
|
|
Chicago
|
0.91
|
0.97
|
1.01
|
|
Dallas
|
0.67
|
0.67
|
0.74
|
|
Los
Angeles
|
0.66
|
0.66
|
0.67
|
|
Miami
|
1.17
|
1.29
|
1.31
|
|
Source:
S&P/Experian Consumer Credit Default Indices
|
|
|
Data through June
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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