Full text of G.19 Consumer Credit : December 7, 1978

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FEDERAL

RESERVE

statistical

release
FOR IMMEDIATE RELEASE
DECEMBER 7, 1978

G.19
CONSUMER INSTALMENT CREDIT

OCTOBER 1978

GROWTH IN CONSUMER INSTALMENT CREDIT OUTSTANDING SLOWED IN OCTOBER TO
$3.12 BILLION, FROM SEPTEMBER'S REVISED $3.68 BILLION INCREASE. THE PREVIOUS PEAK GAIN
WAS $4.21 BILLION IN MAY, ACCORDING TO REVISIONS IN THE SERIES THAT ARE EXPLAINED
IN THE ATTACHMENT. THE REDUCED OCTOBER EXPANSION REPRESENTED AN ANNUAL RATE OF
GROWTH IN OUTSTANDINGS OF 14 PER CENT, COMPARED WITH 17 PER CENT IN SEPTEMBER AND
THE THIRD QUARTER AS A WHOLE, AND A HIGH OF 21 PER CENT IN THE SECOND QUARTER.
INSTALMENT CREDIT NEWLY EXTENDED IN OCTOBER ADVANCED MODERATELY TO A
NEW HIGH OF $25.86 BILLION, BUT HAS EXPERIENCED LITTLE GROWTH ON BALANCE SINCE THE
$25.57 BILLION FIGURE IN JUNE. LIQUIDATIONS, MEANWHILE, ROSE SHARPLY TO $22.73 BILLION
IN OCTOBER FROM $21.86 BILLION THE MONTH BEFORE, RESULTING IN THE SMALLER INCREASE
IN CREDIT OUTSTANDING.
THE MODERATE SLACKENING OF GROWTH WAS EVIDENT IN ALL CREDIT TYPE COMPONENTS,
BUT WAS MOST NOTICEABLE IN THE REDEFINED REVOLVING CREDIT CATEGORY, WHICH EXPERIENCED
ITS SMALLEST ADVANCE OF THE YEAR.
(IN MILLIONS OF DOLLARS)
INSTALMENT CREDIT, TOTAL
AMOUNT EXTENDED:
AUTOMOBILE
REVOLVING (1)
MOBILE HOMES
OTHER
AMOUNT LIQUIDATED
NET CHANGE IN AMOUNT
OUTSTANDING:
AUTOMOBILE
REVOLVING (1)
MOBILE HOMES
OTHER
AMOUNT OUTSTANDING,
END OF MONTH

OCT 1978 | SEPT 1978 | OCT 1978 I OCT
1977
(SEASONALLY ADJ.)
I
(NOT SEAS.ADJ.)
25,8551

I

125,5371

I

7,511|
8,8461
604|
8,8941

7,5421
9,0061
494|
8,4951

I
I

I
I

22,7321

I
I

21,8571

25,3971

21,311

292,020

6,224
7,491
471
7,125

87,392
101,655
6,007
96,966

19,052

248,296

2,2101

2,259

43,724

900
465
68
826

I
7,4131
8,8151
5981
8,571|

I
I
23,1871

I
I

3,1231

I
I

I

3,6801

I

1,3851
3461
251
1,367|

I

1,107|
159|
14|
9301

I
I

1»532|
6221
721
lt454|

LATEST 12 MONTHS
(NOT SEAS.ADJ.)

(4)
(4)
(4)
(4)

I
I

221,877
(2)
I
265,5761
I
(2) SHORT|
NOTE: THE BOARD'S SERIES COVERS MOST
AND INTERMEDIATE-TERM
CREDIT EXTENDED

(1)
(2)
(3)

(4)

|
TO INDIVIDUALS THROUGH REGULAR BUSINESS(2)
CHANNELS,
USUALLY TO FINANCE THE
PURCHASE OF CONSUMER GOODS AND SERVICES OR TO REFINANCE DEBTS INCURRED FOR
SUCH PURPOSES, AND SCHEDULED TO BE REPAID (OR WITH THE OPTION OF REPAYING)
IN TWO OR MORE INSTALMENTS. FOR FURTHER EXPLANATION, SEE ATTACHMENT TO
RELEASE. DETAILS MAY NOT ADD TO TOTALS DUE TO ROUNDING.
CREDIT CARDS AT RETAILERS, GASOLINE COMPANIES AND COMMERCIAL BANKS, AND
CHECK CREDIT AT COMMERCIAL BANKS.
NOT APPLICABLE OR NOT AVAILABLE.
A VALUE FOR THE UNADJUSTED NET CHANGE IN OUTSTANDINGS APPEARS ALSO ON THE NEXT
TO LAST COLUMN ON THE NEXT PAGE, BUT MAY VARY SLIGHTLY, DUE TO DIFFERENT
AGGREGATION METHODS.
FOR VALUES SEE THE NEXT TO LAST COLUMN ON THE NEXT PAGE UNDER THE HEADING
"CHANGE FROM END OF OCTOBER 1977 AMOUNT N.S.A."




(3)

CONSUMER

INSTALMENT CREDIT BY HOLDER AND TYPE -

OCT

1978

(IN MILLIONS OF DOLLARS)

L I Q U I D A T E D
OCT
1978
S.A.

SEPT
1978
S.A.

OCT
1977
S.A.

OCT
|
1978 I
•S.A. 1

NET | | O U T S T A N D I N G
CHG | |
OCT || END OF CHANGE FROM END
OF OCT
1977
1978|| OCT
S.A.|| 1978
PER
AMOUNT
CENT
N.S.A.
(1) II N.S.A.

25,397

22,732

21,857

19,066

23,187

3123

265,576

43,699

20

10,551
3,620
2,981
3,348
391
1,248
134

11,875
4,509
3,130
3,512
910
1,312
149

10,565
3,742
2,757
3,403
787
1,319
159

10,409
3,525
2,721
3,390
309
1,337
166

8,833
3,073
2,444
3,090
293
1,190
143

10,8121
3,8051
2,8201
3,3501
7881
1,4521
1601

1 3 8 8 H 132,457
8631 I 51,984
6441 | 44,635
115|| 22,464
1051 I
8,177
16| |
3,276
-81 I
2,583

23,683
8,716
8,058
1,594
976
240
432

22
20
22
8
14
8
20

7,542

6,503

7,413

6,126

6,010

5,274

6,3061

13851 I^100,159

4,479
2,519
1,960
1,641
1,422

4,069
2,233
1,836
1,414
1,020

4,354
2,401
1,953
1,532
1,527

3,586
2,030
1,556
1,342
1,198

3,631
2,002
1,629
1,328
1,051

3,239
1,790
1,449
1,178
857

3,651|
2,0531
1,5981
1,3841
1,271|

769|
354|
415|
301|
315|

9,006

7,666

8,815

8,500

8,384

6,999

6,656!

346||

4,457
3,203
1,346

3,523
2,895
1,248

4,473
3,030
1,312

4,138
3,043
1,319

4,077
2,970
i,337

3,116
2,693
1,190

4,2431
2,9611
1,4521

494

478

598

579

422

402

5841

25| I

15,925

853

297
77
100
20

304
59
98
17

341
82
153
22

377
75
108
19

266
71
73
12

264
56
71
11

3851

-2511
-2| I
461 I
6| I

9,548
3,127
2,775
475

472
22
2 75
84

5
1
11
21

8,495

7,626

8,571

7,527

7,041

6,391

7,641|

13671 I 106,913

15,895

17

2,890
2,873
1,699
515
303
215

2,655
2,541
1,550
453
293
134

2,707
2,900
1,576
482
757
149

2,464
2,469
1,396
360
679
159

2,435
2,403
1,381
420
236
166

2,214
2,160
1,255
397
222
143

2,5331
2,4651
1,417|
389|
677|
160)

6,308
4,343
4,280
-169
701
432

18
17
23
-3
15
20

E X T E N D E O
INSTALMENT CREOIT, BY
HOLDER AND TYPE

OCT
1978
S.A.

SEPT
1978
S.A.

OCT
1977
S.A.

25,537

22,273

12,123
4,372
3,360
3,718
403
1,346
215

7,5111

I

-I-

TOTAL

25,855

OCT
1978
N.S.A.

1

I
BY MAJOR HOLDER

I
COMMERCIAL BANKS
FINANCE COMPANIES
CREDIT UNIONS
RETAILERS (2)
SAVINGS AND LOANS
GASOLINE COMPANIES
MUTUAL SAVINGS BANKS
BY MAJOR CREDIT TYPE
AUTOMOBILE
COMMERCIAL BANKS
INDIRECT PAPER
DIRECT LOANS
CREOIT UNIONS
FINANCE COMPANIES

11,953|
4,6051
3,4011
3,518|
8921
1,3351
1511

I
I
I
4,355j
2,3841
1,971|
1,6431
1,5131

I

REVOLVING
COMMERCIAL BANKS
RETAILERS
GASOLINE COMPANIES
MOBILE HOMES

8,846|

1
4,475|
3,0361
1,3351

19,412

24

59,778
33,415
26,363
21,344
19,037

11,367
6,680
4,687
3,694
4,351

23
25
22
21
30

42,579

7,539

22

3371 I* 22,165
- 7 | | 17,138
1611
3,276

5,536
1,763
240

33
11
8

|
|
|
I
|

I
COMMERCIAL BANKS
FINANCE COMPANIES
SAVINGS AND LOANS
CREDIT UNIONS
OTHER

6041

I
3521
731
154|
8,894|
25|

69|

nil

191

I
COMMERCIAL BANKS
FINANCE COMPANIES
CREDIT UNIONS
RETAILERS
SAVINGS AND LOANS
MUTUAL SAVINGS BANKS
11)
(2)
(3)




2,771|
3,0191
1,733)
4821
7381
1511

307| I
5501 I
337| |
122||
591 I
-8| |

40,966
29,820
22,816
5,326
5,402
2,583

NET CHANGES FOR ALL MONTHS EQUAL EXTENSIONS MINUS LIQUIDATIONS (REPAYMENTS, CHARGEOFFS, AND OTHER CREDITS).
EXCLUDES 30-DAY CHARGE CREDIT HELD BY RETAILERS, GASOLINE COMPANIES, AND TRAVEL AND ENTERTAINMENT COMPANIES.
MUTUAL SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, AND AUTO DEALERS.
NOTE:

S.A. AND N.S.A. DENOTE SEASONALLY ADJUSTED AND NOT SEASONALLY
DETAILS MAY NOT ADD TO TOTALS DUE TO ROUNDING.

ADJUSTED DATA,

RESPECTIVELY.

December 7, 1978

NOTICE OF MAJOR REVISIONS IN THE 4 2 1 ^ . 1 9 ) STATISTICAL RELEASE

| This release differs in format from the version published
_ .._ „ j

earlier, and presents revised estimates adjusted to new bench marks and
other changes.
Changes in Format
Some holders of certain types of credit are identified
separately for the first time, partly as a result of new information
that has become available.

At the same time, several credit types—

formerly shown separately—are combined into broader categories,
reflecting the simplification of report forms to reduce reporting
burden, and the blurring of distinctions among certain types of credit
as a result of evolving market practices.

The column-by~column

presentation format in the "421" release remains unchanged.
1.

Estimates for savings and loan associations and mutual

savings banks, formerly included in an "all other" holder category,
are shown separately for the first time.

This change documents the

increased participation of these types of institutions in consumer
credit markets.
2.

Retail store credit estimates formerly included wholly

in an "all other" credit category, are disaggregated into the
"revolving" credit category and the "other" category, corresponding
to newly available Census Bureau information.
3.

The "revolving" credit category has been expanded to

include estimates of open-end credit held by the large petroleum
marketing companies through gasoline credit cards used by individuals.




All gasoline,company credit now included in the series was formerly
treated as non-instalment credit and not rmortftd in the "421" instalment credit release.
4.

Commercial bank credit card and check credit estimates

are combined into one item, rather than reported separately, owing in
part to reporting difficulties and in part to changing market practices
5.

The former "home improvement11 credit category has been

discontinued as a separate item, and merged with "other" credit. This
change recognizes that funds borrowed to finance home improvements are
raised through a variety of credit mechanisms—such as credit cards or
personal cash loans—that cannot be segregated readily by loan purpose.
Also, part of the amounts extended for home improvement loans may be
used, in practice, for personal expenditures or debt repayment.
6.

Notes to be published periodically with the "421" release

describe the series in greater detail and inform the user about
additional Federal Reserve sources of consumer credit statistics.
For the final month of each quarter, the "421" release will
continue to include quarterly summary totals for credit extensions,
credit liquidations, and net change in credit outstanding, with each
total also shown as a percentage of disposable personal income.
Once annually, the "421" release, as in the recent past,
will present a year-end estimate of aggregate consumer noninstalment
credit outstanding.




-3Revisions in Estimates
All estimates in this issue of the "421" release incorporate
revisions based on:

(a) new bench mark information for all holder

groups; (b) elimination of a previous arbitrary adjustment—affecting
commercial banks, mutual savings banks, and savings and loan associations—that was designed to remove certain credit used by households for
business or other nonconsumer purposes; (c) the addition—beginning in
1971—of open-end credit held by the large petroleum marketing companies
through gasoline credit cards used by individuals, as noted earlier; and
(d) the addition—beginning in 1977—of some retailer-held credit, formerly
classified by the Census Bureau as noninstalment, that has been reclassified as instalment.
Revised monthly estimates, in the same format as in the "421"
release, are available for the period January 1943 through September 1978.
Contact Ms. Lois Lawrence, Mortgage and Consumer Finance Section, Division
of Research and Statistics, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551, phone (202) 452-2458.
The net results of these revisions and additions on aggregate
estimates for the calendar years 1976 and 1977 are indicated below:

Extensions

1977
Liquida- Net change in
tions
outstandings

Extensions

1976
Liquida- Net change in
tions
outstandings

Revised

254.1

218.8

35.3

211.0

189.4

21.6

Former

225.7

194.6

31.1

193.3

172.8

20.5

28.4

24.2

4.2

17.7

6.6

1.1

Difference

Note: All figures are in billions of dollars.




CONSUMER INSTALMENT CREDIT
SEASONALLY ADJUSTED
LIQUINET
DATIONS
CHANGE
-68. |
13786. |
13787. |
363. |
14133. 1
-305. |
14084. |
-26. |
14139. |
-69. |
14376. |
305. I
14175. |
1256. |
14584. |
936. |
14748. |
1033. |
14801. |
1131. |
1304. |
15073. |
14924. |
1725. |

1975-JAN...|
-FEB...I
-MAR...I
-APR...|
-MAY...|
-JUN...I
-JUL...|
-AUG...I
-SEP...1
-OCT...I
-NOV...|
-DEC...1

EXTENSIONS
13718. 1
14150. |
13828. |
14058. |
14070. |
14681. |
15431. |
15520. |
15781. 1
15932. |
16377. |
16649. |

1976-JAN...I
-FEB...I
-MAR...I
-APR...I
-MAY...
-JUN...I
-JUL...I
-AUG...
-SEP...
-OCT...
-NOV...
-DEC...!

16620. |
17075. |
16977. |
16775. I
16944. I
17353. |
17277. 1
17594. |
17904. 1
18117. 1
18316.
19027. 1

15281. |
15379. |
15489. |
14879. |
15267. i
15762. 1
15703. 1
15935. i
15927. 1
16128. I
16503.
16661.

1977-JAN...
-FEB...
-MAR... I
-APR... I
-MAY... I
-JUN... I
-JUL... I
-AUG... I
-SEP... I
-OCT... I
-NOV... I
-DEC... I

19379.
19927.
20802.
20953.
20991.
20764.
20796.
21408.
21528.
22273.
22487.
23469.

I
1
I
1
I
I
I
I

17272.
17566.
17434.
17864.
18091.
18200.
18389.
18473.
18683.
19066.
18891.
19252.

1978-JAN... I
-FEB... I
-MAR... I
-APR... I
-MAY... I
-JUN... I
-JUL... I
-AUG... I
-SEP... I
-OCT.. .I

21983.
22758.
23925.
24682.
25104.
25565.
25022.
25669.
25537.
25855.

I
I
I
I
I
I
I
I
I
I

19546.
19896.
19849.
20576.
20824.
21358.
21556.
22037.
21857.
22732.




^ '
OUTSTANDINGS
162628. |
161527. |
160053. |
160243. 1
160798. |
161995. 1
164110. 1
166043. 1
167336. |
168172. |
169106. |
172353. 1

1339. 1
1696. 1
1488. 1
1896. |
1677.
1591.
1574.
1659.
1977. I
1989.
1813. |
2366. I

171352. 1
171019. |
171615. 1
173926. |
175944. 1
179104. |
181571. |
184384. |
186791. |
188016. |
189700. |
193977. |

I
I
1
I
I
I
I
I
I
1

2107.
2361.
3368.
3 089.
2900.
2564.
2407.
2935.
2845.
3207.
3596.
4217.

194751. I
194984. |
197585. |
200994. |
204528. I
208909. I
211956. |
216469. |
219619. |
221877. |
225207. |
230829. |

I
I
I
1
I
I
1
I
I
I

2437.
2862.
4076.
4106.
4280.
4207.
3466.
3632.
3680.
3123.

1

|
I
I
I
|
I
I
|
I
I
I

1
I
I
I
I
1
|
I
I
I
I

y

I

230126. |
230547. |
233842. |
237855. 1
243371. |
249865. |
253897. |
259614. |
263387. |
265576. |