NEW YORK, Oct. 16, 2018 /PRNewswire/ -- S&P Dow Jones
Indices and Experian released today data through September 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 was five basis points lower than last month, at
0.82%. The bank card default rate dropped 38 basis points to 3.14%.
The auto loan default rate decreased eight basis points to 0.89%.
The first mortgage default rate was down two basis points, to
0.63%.
All five major MSAs recorded decreases in composite default
rates in September 2018. Dallas showed the largest decrease, falling 11
basis points to 0.73%. The default rate for Los Angeles fell nine basis points to 0.56%,
while the rate for Chicago fell
six basis points to 0.85%. The default rate for New York dropped four basis points to 0.79%,
while the default rate for Miami
was one basis point lower, at 1.56%.
Notably, all loan types and all major MSAs saw a decrease in
default rates in September 2018.
September 2018 also marked the fifth
consecutive month of decreasing bank card default rates. The latest
rate of 3.14% is the lowest level observed since December 2016. The monthly drop of 38 basis
points was the biggest monthly decline seen since December 2015.
"Consumer credit default rates for mortgages and auto loans are
stable, while default rates for bank cards declined modestly in the
last few months," says David M.
Blitzer, Managing Director and Chairman of the Index
Committee at S&P Dow Jones Indices. "With the low unemployment
rate and some improvement on wage gains, consumers are not facing
rising economic pressure. The favorable income situation combined
with auto and home sales that have drifted down since late 2017 led
to the current good consumer credit default pattern. Soft retail
sales growth contributed to improvements in the bank card default
picture.
"The 2018 Atlantic hurricane season is turning out to be quite
active; we have already seen 14 named storms with over a month left
before the season nominally ends on November
30th. The short term impact of the
hurricanes is an anticipated reduction in retail sales in impacted
areas. However, this is likely to be followed by rising retail
sales and spending combined with weaker consumer financial
conditions for consumers in affected regions. Depending on the
extent and severity of the storm damage, consumer credit default
rates in some regions could rise during the rest of 2018."
The table below summarizes the September
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
|
September 2018
Index Level
|
August 2018
Index Level
|
September 2017
Index Level
|
Composite
|
0.82
|
0.87
|
0.88
|
First
Mortgage
|
0.63
|
0.65
|
0.66
|
Bank Card
|
3.14
|
3.52
|
3.15
|
Auto Loans
|
0.89
|
0.97
|
1.05
|
Source:
S&P/Experian Consumer Credit Default Indices
|
Data through
September 2018
|
|
The table below provides the S&P/Experian Consumer Default
Composite Indices for the five MSAs:
Metropolitan
Statistical Area
|
September 2018
Index Level
|
August 2018
Index Level
|
September 2017
Index Level
|
New York
|
0.79
|
0.83
|
0.97
|
Chicago
|
0.85
|
0.91
|
1.00
|
Dallas
|
0.73
|
0.84
|
0.78
|
Los
Angeles
|
0.56
|
0.65
|
0.65
|
Miami
|
1.56
|
1.57
|
1.19
|
Source:
S&P/Experian Consumer Credit Default Indices
|
Data through
September 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
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
Soogyung Jordan
North America Communications
New York, USA
(+1) 212 438 2297
soogyung.jordan@spglobal.com
Jordan
Takeyama
Experian Public Relations
(+1) 714 830 7561
jordan.takeyama@experian.com
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SOURCE S&P Dow Jones Indices