The US consumer: deleveraging but still up to the ears in debt

The Quarterly Report on Household Debt and Credit published this month by the NY Fed puts total outstanding consumer debt at US$11.7 trillion at the end of the second quarter. Although consumer debt fell for the sixth consecutive quarter, it's still only 6.5% below its peak posted in the third quarter of 2008. The delinquency rate stood at 11.4%, up from 11.2% a year earlier. Of the US$1.3 trillion in consumer debt that was delinquent as of June 30, US$986 billion was past due 90 days or more.

On a positive note for Mexico, auto loans rose 25% between the first and second quarters of this year, nearly 32% higher than in the first quarter 2009, their trough. However, loan balances were well below their 2005-2006 levels.