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Financial Accounts of the United States RFor use at 12:00 noon, eastern time June 11, 2020 F EDERAL R ESERVE S TATISTICAL R ELEASE Z.1 Financial Accounts of the United States Flow of Funds, Balance Sheets, and Integrated Macroeconomic Accounts First Quarter 2020 B OARD OF G OVERNORS OF THE F EDERAL R ESERVE S YSTEM i Recent Developments in Household Net Worth and Domestic Nonfinancial Debt The net worth of households and nonprofits fell to annual rate of 1.6 percent, while mortgage debt $110.8 trillion in the first quarter of 2020. The value of (excluding charge-offs) grew at an annual rate of 3.2 directly and indirectly held corporate equities decreased percent. $7.8 trillion and the value of real estate increased $0.4 trillion. Nonfinancial business debt rose at an annual rate of 18.8 percent in the first quarter of 2020, up from a 2.0 Domestic nonfinancial debt outstanding was $55.9 percent annual rate in the previous quarter. trillion at the end of the first quarter of 2020, of which household debt was $16.3 trillion, nonfinancial business Federal government debt increased 14.3 percent at an debt was $16.8 trillion, and total government debt was annual rate in the first quarter of 2020, up from a 3.8 $22.8 trillion. percent annual rate in the previous quarter. Domestic nonfinancial debt expanded 11.7 percent at State and local government debt expanded at an an annual rate in the first quarter of 2020, up from an annual rate of 0.1 percent in the first quarter of 2020, annual rate of 3.2 percent in the previous quarter. after expanding at an annual rate of 4.5 percent in the previous quarter. Household debt increased 3.9 percent at an annual rate in the first quarter of 2020. Consumer credit grew at an Household Net Worth and Growth of Domestic Nonfinancial Debt Growth of domestic nonfinancial debt2 Household Federal State and Year net worth1 Total Households Businesses government local gov’ts 2010 66,465 4.4 -0.6 -0.8 18.5 2.7 2011 67,742 3.6 -0.0 2.6 10.8 -1.2 2012 72,846 4.8 1.0 5.0 10.1 0.1 2013 81,714 3.7 1.7 4.5 6.7 -1.7 2014 87,544 4.1 2.1 6.5 5.4 -1.2 2015 90,629 4.4 2.4 6.9 5.0 0.4 2016 95,912 4.4 3.2 5.3 5.6 1.1 2017 104,793 4.2 4.0 6.0 3.7 0.0 2018 105,727 4.7 3.2 4.2 7.6 -1.6 2019 117,335 4.7 3.4 4.8 6.7 0.3 2018: Q1 105,550 6.7 3.1 3.9 14.3 -3.2 Q2 107,190 4.0 3.5 3.3 5.7 -0.4 Q3 109,194 4.3 3.4 4.3 5.9 -1.4 Q4 105,727 3.4 2.8 4.8 3.7 -1.4 2019: Q1 111,173 6.0 2.1 6.8 9.8 -1.3 Q2 113,151 3.1 4.3 4.3 2.1 -2.5 Q3 114,239 6.4 3.4 5.7 10.4 0.6 Q4 117,335 3.2 3.4 2.0 3.8 4.5 2020: Q1 110,787 11.7 3.9 18.8 14.3 0.1 1. Shown on table B.101, which includes nonprofit organizations. Billions of dollars; amounts outstanding end of period, not seasonally adjusted. 2. Percentage changes calculated as transactions at a seasonally adjusted annual rate divided by previous quarter’s seasonally adjusted level, shown at an annual rate. ii iii Release Highlights First Quarter 2020 Topic Description Improved Recent Developments A new Recent Developments page has been added to the Z.1 release page. The Recent Developments page includes new analysis and charts related to recent events and developments in the Financial Accounts of the United States. The new page can be found at https://www.federalreserve.gov/releases/z1/20200611/html/rec ent_developments.htm Monetary authority sector The monetary authority sector (tables F.109 and L.109) has been modified to include expanded detail on Federal Reserve facilities, including interbank loans associated with the Money Market Mutual Fund Liquidity Facility (MMLF), and depository institution loans n.e.c. associated with the MMLF and the Primary Dealer Credit Facility (PDCF). Designated financial market utility Deposits of designated financial market utilities (DFMU) at deposits at Federal Reserve banks Federal Reserve banks have been added to the checkable deposits and currency liabilities of the monetary authority sector (tables F.109 and L.109). DFMU deposits were previously included in other miscellaneous liabilities of the monetary authority. DFMU deposits at the Federal Reserve banks are now reported as assets of the other financial business sector (tables F.132 and L.132). Nonfinancial noncorporate business Nonfinancial noncorporate business sector data (tables F.104, sector L.104, B.104, and R.104) has revised from 2010:Q4 forward due to improved methodology and to reflect new benchmark data from the Internal Revenue Service Statistics of Income for 2017. Nonfinancial corporate business Nonfinancial corporate business sector data (tables F.103, sector L.103, B.103, and R.103) has revised from 2018:Q1 forward to reflect new benchmark data from the Internal Revenue Service Statistics of Income for 2018. Consumer credit Total consumer credit (tables F.222 and L.222) has been revised from 2010:Q1 forward owing to new seasonal factors reflected in the Federal Reserve Board's G.19 statistical release on April 7, 2020. Susan Hume McIntosh This is the last publication led by Susan Hume McIntosh, who will retire in August, 2020. Susan joined the Federal Reserve Board of Governors in September, 1972, and for decades led the publication of the Financial Accounts of the United States. She spearheaded countless innovations to the Financial Accounts, trained generations of analysts, has worked with numerous statistical agencies in other countries and international organizations, and is considered a leading international expert on financial accounts. The Flow of Funds team cannot thank Susan enough for her invaluable contributions, and wishes her the best in her retirement. We hope that she will continue to contribute to the national accounting community in the United States and worldwide. iv v Explanatory Notes Financial Accounts of the United States Concepts of Levels and Transactions in the SNA and the Financial Accounts The Statistical Release Z.1, Financial Accounts of the United States, or Financial Accounts, is organized into The level of an asset or liability (also referred to as the the following sections: “stock” or “outstanding”) measures the value of the asset or liability in existence at a point in time. In the ■ Matrices summarizing transactions and levels Financial Accounts, the levels are reported as of the end across sectors and tables on debt growth, net of each calendar quarter. In the SNA2008, the change in national wealth, gross domestic product (GDP), the level from one period to the next is called the national income, saving, and so on economic flow, and can be decomposed into three broad ■ Transactions of financial assets and liabilities, elements: transactions, which measure the exchange of by sector and by financial instrument assets; revaluations, which measure holding gains and ■ Levels of financial assets and liabilities, by losses; and other changes in volume, which measure sector and by financial instrument discontinuities or breaks in time series due to disaster ■ Balance sheets, including nonfinancial assets, losses or a change in source data or definition. In and changes in net worth for households and practice, other volume changes are relatively rare, and nonprofit organizations, nonfinancial corporate revaluations occur mainly for series carried at market businesses, and nonfinancial noncorporate value (such as corporate equities, real estate, and some businesses debt securities), so for many series the change in the level is equal to the transactions element. Supplementary balance sheet tables for the household sector, nonprofit organization sector, and the household and nonprofit organization Growth Rates sector with additional equity detail Growth rates calculated from levels include revaluations ■ Integrated Macroeconomic Accounts (IMA) and other changes in volume. In order to isolate the effect of transactions on the growth of a given asset or The IMA relate production, income, saving, and capital liability, users should calculate the ratio of transactions formation from the Bureau of Economic Analysis’s in a given period to the level in the preceding period. (BEA) national income and product accounts (NIPA) to changes in net worth from the Financial Accounts on a Growth rates in table D.1 are calculated by dividing sector-by-sector basis. The IMA are published jointly by transactions at a seasonally adjusted annual rate from the Federal Reserve Board and BEA and are based on table D.2 by seasonally adjusted levels at the end of the international guidelines and terminology as defined in previous period from table D.3. Growth rates calculated the System of National Accounts (SNA2008). from changes in unadjusted levels may differ from those in table D.1. Federal Reserve Board staff have taken many steps over the past several years to conform the Financial Accounts Seasonal Adjustment with the SNA2008 guidelines. Nonetheless, a few important differences remain, in particular, the Seasonal factors are recalculated and updated every following in the Financial Accounts: September with the release of second-quarter data. Series that exhibit significant seasonal patterns are ■ The purchase of consumer durables is treated as adjusted.
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