Non-Financial Debt Growth Rate Slows

Growth in non-financial debt slowed during the first quarter, reflecting smaller gains in borrowing by consumers, companies and governments, the Federal Reserve said.

Non-financial debt, which excludes borrowing by banks, rose at a 6.5% annual rate during the quarter, the slowest in a year.

In the fourth quarter, non-financial debt increased at an 8% pace.

Household debt rose at a 10% pace in the first quarter after expanding at a 10.9% pace in the fourth quarter.

The Fed’s report also showed that household net worth declined to $39.313 trillion in the first quarter from $39.333 trillion in the fourth quarter as the value of stocks and mutual funds fell.

Business debt rose at a 3.7% pace after increasing at 4.3% the previous quarter.