NEW YORK, June 19, 2018 /PRNewswire/ -- S&P Dow
Jones Indices and Experian released today data through May 2018 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 decreased three basis points from last month to 0.89%. The
bank card default rate dropped two basis points to 3.84%, and the
auto loan default rate fell six basis points from last month to
0.93%. The first mortgage default rate declined by two basis
points, to a level of 0.66%.
Three of the five major cities saw decreases in composite
default rates in May 2018.
Chicago and Dallas each decreased two basis points, to
0.88% and 0.80%, respectively. The default rate for Miami in May
2018 was 2.77%, which was one basis point lower than the
previous month. The rate for New
York increased two basis points to 0.92%, while the rate for
Los Angeles increased three basis
points to 0.62%.
The auto loan default rate has steadily fallen in 2018 and now
is at its lowest rate since July
2017. Two notable trends so far in 2018 have been the
consistently increasing default rates for both bank cards and for
Miami. After seeing increases each
month of the year, both reversed course in May, if only
slightly.
"Consumers continue to pay their bills on time," says
David M. Blitzer, Managing Director
and Chairman of the Index Committee at S&P Dow Jones Indices.
"With the economy turning in good numbers with low unemployment,
low inflation and gradually rising wages, consumer credit default
rates are flat to down. Consumer borrowing has recovered from the
financial crisis. Mortgage debt outstanding fell 12.6% from its
early 2008 peak to the bottom in 2014; now it remains roughly 6.1%
below the peak. Outstanding debt on bank cards dropped 18% from a
May 2008 high to a low in
May 2011. Subsequently, it recovered
and is now about 1% higher than the peak seen 10 years ago.
Borrowing for auto loans peaked in early 2005, before the financial
crisis, then hit its low point in 2010 and has experienced a strong
rebound. Currently, outstanding auto loans are almost 40% above the
2005 level.
"Looking ahead, there may be some concern about how long the
moderate default rates can continue. Savings as a percentage of
disposable income is declining. At the current level of 3%, it is
near the low point seen in the boom before the financial crisis.
While inflation remains low, wage growth is not very high and home
prices are rising two to three times faster. Any rapid rise in
defaults will wait for the next recession, whenever it comes."
The table below summarizes the May
2018 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
|
May 2018 Index
Level
|
April 2018
Index Level
|
May 2017 Index
Level
|
Composite
|
0.89
|
0.92
|
0.86
|
First
Mortgage
|
0.66
|
0.68
|
0.64
|
Bank Card
|
3.84
|
3.86
|
3.53
|
Auto Loans
|
0.93
|
0.99
|
0.85
|
Source:
S&P/Experian Consumer Credit Default Indices
|
Data through May
2018
|
|
The table below provides the S&P/Experian Consumer Default
Composite Indices for the five MSAs:
Metropolitan
Statistical
Area
|
May 2018 Index
Level
|
April 2018
Index Level
|
May 2017 Index
Level
|
New York
|
0.92
|
0.90
|
1.01
|
Chicago
|
0.88
|
0.90
|
0.97
|
Dallas
|
0.80
|
0.82
|
0.67
|
Los
Angeles
|
0.62
|
0.59
|
0.66
|
Miami
|
2.77
|
2.78
|
1.29
|
Source:
S&P/Experian Consumer Credit Default Indices
|
Data through May
2018
|
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:
https://www.spindices.com/indices/indicators/sp-experian-consumer-credit-default-composite-index.
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
products based on indices from any other provider in the world.
Since Charles Dow invented the first
index in 1884, S&P DJI has become home to over 1,000,000
indices across the spectrum of asset classes that have helped
define 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
organizations 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
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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
Jordan
Takeyama
Experian Public Relations
(+1) 714 830 7561
jordan.takeyama@experian.com
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