Financial Accounts of the United States - Z.1

Recent Developments in Household Net worth and Domestic Financial Debt

The net worth of households and nonprofits rose to $119.0 trillion during the second quarter of 2020. The value of directly and indirectly held corporate equities increased $5.7 trillion and the value of real estate increased $0.5 trillion.

Domestic nonfinancial debt outstanding was $59.3 trillion at the end of the second quarter of 2020, of which household debt was $16.1 trillion, nonfinancial business debt was $17.6 trillion, and total government debt was $25.6 trillion.

Domestic nonfinancial debt expanded 25.3 percent at an annual rate in the second quarter of 2020, up from an annual rate of 10.6 percent in the previous quarter.

Household debt increased 0.5 percent at an annual rate in the second quarter of 2020. Consumer credit shrank at an annual rate of 6.6 percent, while mortgage debt (excluding charge-offs) grew at an annual rate of 3 percent.

Nonfinancial business debt rose at an annual rate of 14 percent in the second quarter of 2020, down from a 18.4 percent annual rate in the previous quarter.

Federal government debt increased 58.9 percent at an annual rate in the second quarter of 2020, up from a 11.4 percent annual rate in the previous quarter.

State and local government debt expanded at an annual rate of 3.5 percent in the second quarter of 2020, after expanding at an annual rate of 0.9 percent in the previous quarter.

Household Net Worth and Growth of Nonfinancial Debt
Year Household Net Worth1 Growth of domestic nonfinancial debt; Total 2 Growth of domestic nonfinancial debt; Households Growth of domestic nonfinancial debt; Businesses Growth of domestic nonfinancial debt; Federal government Growth of domestic nonfinancial debt; State and local govts
2010 66,427 4.5 -0.4 -0.7 18.5 3.0
2011 67,686 3.7 0.1 2.5 10.8 -1.0
2012 72,854 4.6 0.5 5.4 10.1 -0.3
2013 81,622 4.1 2.3 4.7 6.7 -0.3
2014 87,704 3.8 1.2 6.7 5.4 -2.5
2015 90,797 4.4 2.2 7.1 5.0 0.4
2016 96,109 4.4 3.1 5.4 5.6 1.1
2017 105,099 4.2 3.8 6.2 3.7 0.0
2018 105,764 4.7 3.3 4.2 7.6 -1.6
2019 118,577 4.7 3.3 4.8 6.7 0.3
2018:Q2 107,482 4.3 3.5 3.3 6.7 0.2
2018:Q3 109,451 3.8 3.5 4.5 4.4 -1.2
2018:Q4 105,764 3.4 2.7 4.6 4.1 -2.7
2019:Q1 111,812 5.9 2.2 6.8 9.6 -0.6
2019:Q2 113,956 3.5 4.0 4.3 3.1 -1.8
2019:Q3 115,049 5.9 3.3 6.0 8.9 0.9
2019:Q4 118,577 3.3 3.4 1.9 4.5 2.9
2020:Q1 111,348 10.6 3.8 18.4 11.4 0.9
2020:Q2 118,955 25.3 0.5 14.0 58.9 3.5
  1. Shown on table B.101, which includes nonprofit organizations. Billions of dollars; amounts outstanding end of period, not seasonally adjusted. Return to table
  2. Percentage changes calculated as transactions at a seasonally adjusted annual rate divided by previous quarters seasonally adjusted level, shown at an annual rate. Return to table

Release Highlights Second Quarter 2020

Topic Description
Nonfinancial debt data visualizations New data visualizations are available showing debt owed by households and nonprofit organizations, federal government and nonfinancial business sectors, with additional detail on the components of nonfinancial business debt.
Other financial business sector funding, credit and liquidity facility special purpose vehicles In response to the COVID-19 pandemic, the Federal Reserve System established five funding, credit, and liquidity facilities as special purpose vehicles (SPVs): the Corporate Credit Facilities (CCF), the Main Street Lending Program (MSLP), the Term Assets Lending Facility (TALF), the Municipal Liquidity Facility (MLF), and the Commercial Paper Funding Facility (CPFF). In the Financial Accounts of the United States, and consistent with System of National Accounts (SNA 2008) guidelines, these five SPVs are not consolidated in the monetary authority sector, but are instead treated as separate institutional units, included in the other financial business sector (tables F.132 and L.132). This treatment differs from the Federal Reserve H.4.1 release, which consolidates the SPVs on the Federal Reserve balance sheet. The SPVs were initially funded by Treasury equity investments to cover potential losses. Eighty-five percent was initially invested in nonmarketable Treasury securities and fifteen percent in cash deposits at the monetary authority. The SPVs make loans and asset purchases with additional borrowings from the monetary authority.
Federal government sector equity investments in economic recovery programs In response to the COVID-19 pandemic, Treasury made equity investments in the five funding, credit and liquidity facility SPVs mentioned above (CCF, MSLP, TALF, MLF, and CPFF) and the Money Market Mutual Fund Liquidity Facility (MMLF). The equity investments are shown as identified miscellaneous assets of the federal government (tables F.106 and L.106), identified miscellaneous liabilities of the other financial business sector for the CCF, MSLP, TALF, MLF, and CPFF (tables F.132 and L.132), and the monetary authority sector for the MMLF (table F.109 and L.109).
Monetary authority sector loans to funding, credit and liquidity facility special purpose vehicles The monetary authority sector (tables F.109 and L.109) has been modified to include loans made to the five new funding, credit and liquidity facility SPVs (CCF, MSLP, TALF, MLF, and CPFF) classified in the other financial business sector (tables F.132 and L.132).
Paycheck Protection Program Liquidity Facility loans The monetary authority sector (tables F.109 and L.109) has been modified to include loans made under the Paycheck Protection Program Liquidity Facility (PPPLF) to depository institutions, and finance companies.
Paycheck Protection Program loans Paycheck Protection Program (PPP) loans made to small businesses and nonprofit institutions impacted by the COVID-19 pandemic are not shown separately from other types of loans reported by lenders. PPP loans, the majority of which are made by U.S.-chartered depository institutions, are included in depository institutions loans not elsewhere classified (tables F.215 and L.215). PPP loans made by non-depository institutions are included in the other loans and advances (tables F.216 and L.216).
Paycheck Protection Program loan forgiveness payables and receivables Paycheck Protection Program (PPP) payable liabilities and receivable assets were added to the Financial Accounts trade receivables (tables F.225 and L.225) in order to align with the National Income and Product Accounts (NIPA) accrual treatment of PPP loan forgiveness subsidies to businesses and current transfers to nonprofit institutions serving households (NPISH) (see https://www.bea.gov/help/faq/1408 and https://www.bea.gov/recovery). PPP payable liabilities were added to the federal government sector to account for the accrued liability to repay PPP loans in future periods, and are equal to loan forgiveness subsidies to businesses and current transfers to NPISH reported in NIPA. PPP receivable assets were added to household and nonprofit organizations, nonfinancial corporate business, nonfinancial noncorporate business, and finance companies sectors.
Balance sheet of domestic hedge funds supplementary table A new balance sheet of domestic hedge funds (table B.101.f) was added showing assets and liabilities of U.S. domiciled hedge funds. Quarterly data are derived from aggregated Securities and Exchange Commission forms PF and ADV. Data begin 2012:Q4.
Fixed asset supplementary tables Four new fixed assets tables were added: Gross fixed investment (table F.4.g), Consumption of fixed capital (table F.4.c), Net fixed investment (table F.4.f), and Net stocks of fixed assets at current cost (table L.4.s). Aggregate data reported from BEA; financial subsector data estimated by FRB staff.
State and local government employee defined benefit retirement funds State and local government employee defined benefit retirement funds (tables F.120.b and L.120.b) have been revised to incorporate methodology changes to the Census Quarterly Survey of Public Pensions from 2018:Q3 forward.
Private pension benchmark Assets of the private pension fund sector (tables F.118, F.118.b, F.118.c, L.118, L.118.b, and L.118.c) have been revised 2016:Q1 forward to reflect updated 2016 data and new data for plan year 2017 from U.S. Internal Revenue Service/Department of Labor/Pension Benefit Guaranty Corporation Form 5500.
National Income and Product Accounts annual update The statistics in this publication reflect the 2020 annual update of the National Income and Product Accounts (NIPAs) released by the Bureau of Economic Analysis (BEA) on July 30, 2020, as well as information for 2020:Q2 released by BEA on August 27, 2020. See the September 2020 issue of the Survey of Current Business at https://apps.bea.gov/scb/ for details on the 2020 annual update.
Fixed assets annual update Investment, depreciation, and capital stock data for all private sectors have been revised beginning in 2015 to reflect updated annual estimates of fixed assets from BEA.
Rest of the world sector The rest of the world sector (tables F.133 and L.133) has been revised from 2017:Q1 forward to reflect new data from BEA for the U.S. international transactions accounts and the U.S. international investment positions accounts. BEA's changes are detailed in the July 2020 issue of the Survey of Current Business.
Seasonal adjustment Seasonal factors for quarterly transactions have been recalculated from 2010:Q1 forward. Seasonal factors are generated using the X-13-ARIMA seasonal adjustment program from the U.S. Census Bureau. Seasonal factors on marketable Treasury security issuance and purchases were set to zero in 2020:Q1 and 2020:Q2 in light of unusual activity in response to the COVID-19 pandemic and the extension of the tax filing deadline.

Explanatory Notes

Financial Accounts of the United States

The Statistical Release Z.1, Financial Accounts of the United States, or Financial Accounts, is organized into the following sections:

  • Matrices summarizing transactions and levels across sectors and tables on debt growth, net national wealth, gross domestic product (GDP), national income, saving, and so on
  • Transactions of financial assets and liabilities, by sector and by financial instrument
  • Levels of financial assets and liabilities, by sector and by financial instrument
  • Balance sheets, including nonfinancial assets, and changes in net worth for households and nonprofit organizations, nonfinancial corporate businesses, and nonfinancial noncorporate businesses
  • Supplementary balance sheet tables for the household sector, nonprofit organization sector, and the household and nonprofit organization sector with additional equity detail
  • Integrated Macroeconomic Accounts (IMA)

The IMA relate production, income, saving, and capital formation from the Bureau of Economic Analysiss (BEA) national income and product accounts (NIPA) to changes in net worth from the Financial Accounts on a sector-by-sector basis. The IMA are published jointly by the Federal Reserve Board and the BEA and are based on international guidelines and terminology as defined in the System of National Accounts (SNA2008).

Federal Reserve Board staff have taken many steps over the past several years to conform the Financial Accounts with the SNA2008 guidelines. Nonetheless, a few important differences remain. In particular, the following in the Financial Accounts:

  • The purchase of consumer durables is treated as investment rather than as consumption.
  • Nonfinancial noncorporate businesses (which are often small businesses) are shown in a separate sector rather than being included in the household sector.
  • Some debt securities are recorded at book value rather than market value.

Concepts of Levels and Transactions in the SNA and the Financial Accounts

The level of an asset or liability (also referred to as the stock" or outstanding) measures the value of the asset or liability in existence at a point in time. In the Financial Accounts, the levels are reported as of the end of each calendar quarter. In the SNA2008, the change in the level from one period to the next is called the economic flow, and can be decomposed into three broad elements: transactions, which measure the exchange of assets; revaluations, which measure holding gains and losses; and other changes in volume, which measure discontinuities or breaks in time series due to disaster losses or a change in source data or definition. In practice, other volume changes are relatively rare, and revaluations occur only for series carried at market value (such as corporate equities and mutual fund shares), so for many series the change in the level is equal to transactions.

Growth Rates

Growth rates calculated from levels include revaluations and other changes in volume. In order to isolate the effect of transactions on growth of a given asset or liability, users should calculate the ratio of transactions in a given period to the level in the preceding period.

Growth rates in table D.1 are calculated by dividing transactions at a seasonally adjusted annual rate from table D.2 by seasonally adjusted levels at the end of the previous period from table D.3. Growth rates calculated from changes in unadjusted levels may differ from those in table D.1.

Seasonal Adjustment

Seasonal factors are recalculated and updated every year, and these revised factors are first published in the September release of second-quarter data. All series that exhibit significant seasonal patterns are adjusted. The seasonal factors are generated using the X-13-ARIMA seasonal adjustment program from the U.S. Census Bureau, estimated using the most recent 10 years of data. Because the effects of the recent financial crisis resulted in large outliers in some series that would have distorted the estimated seasonal factors, seasonal factors for some series were extrapolated using pre-crisis data. Seasonally adjusted levels shown in table D.3 are derived by carrying forward year-end levels by seasonally adjusted transactions.

Data Revisions

Data shown for the most recent quarters are based on preliminary and potentially incomplete information. A summary list of the most recent data available for each sector is provided in a table following these notes. Nonetheless, when source data are revised or estimation methods are improved, all data are subject to revision. There is no specific revision schedule; rather, data are revised on an ongoing basis. In each release of the Financial Accounts, major revisions are highlighted at the beginning of the publication.

Discrepancies

The data in the Financial Accounts come from a large variety of sources and are subject to limitations and uncertainty due to measurement errors, missing information, and incompatibilities among data sources. The size of this uncertainty cannot be quantified, but its existence is acknowledged by the inclusion of statistical discrepancies for various sectors and financial instruments.

The discrepancy for a given sector is defined as the difference between the aggregate value of the sectors sources of funds and the value of its uses of funds. Sources of funds are gross savings less net capital transfers paid and net increase in liabilities; uses of funds are capital expenditures and the net acquisition of financial assets. If a sectors sources of funds are greater than its uses of funds, the sector is a net lender of funds in the accounts. In the reverse case, the sector would be a net borrower of funds. Most of the data for deriving gross savings come from the BEAs NIPA. For a financial instrument category, the discrepancy is defined as the difference between the measurement of funds raised through the financial instrument and funds disbursed through that instrument. The relative size of the statistical discrepancy is one indication of the quality of the underlying source data. Note that differences in seasonal adjustment procedures sometimes result in quarterly discrepancies that partially or completely offset each other in the annual data.

Financial Accounts Guide

Substantially more detail on the construction of the Financial Accounts is available in the Financial Accounts Guide, which provides interactive, online documentation for each data series. The tools and descriptions in the guide are designed to help users understand the structure and content of the Financial Accounts.

Each input and calculated series in the Z.1 is identified according to a unique string of patterned numbers and letters. The series structure page of the guide provides a breakdown of what the letters and numbers represent in the series mnemonics. Some data submissions to international organizations are also available in the guide. The guide is updated with the quarterly release and is available online:

www.federalreserve.gov/apps/fof

Enhanced Financial Accounts and Data Visualization

Additional supplementary information is available online in the Enhanced Financial Accounts, which augment the Financial Accounts with finer detail, additional types of activities, higher-frequency data, and more-disaggregated data. Links to the Enhanced Financial Accounts are available from both the Financial Accounts Guide page and the main release page. In addition, interactive online data visualizations are available for selected components of the Financial Accounts and Enhanced Financial Accounts. Links are available also on the same pages.

Production Schedule

The Financial Accounts are published four times per year, about 10 weeks following the end of each calendar quarter. The publication is available online:

www.federalreserve.gov/releases/Z1

This website also provides CSV files of quarterly data for transactions at a seasonally adjusted annual rate, unadjusted transactions, outstandings, balance sheets, debt (tables D.1, D.2, and D.3), supplementary tables, and the IMA.

In addition, the data are available as customizable datasets through the Federal Reserve Boards Data Download Program at:

www.federalreserve.gov/datadownload/default.htm

Description of Most Recent Data Available

Sector Table Available at time of publication
National income and product accounts (NIPA) (various tables) Second estimate, seasonally adjusted, for 2020:Q2. Corporate profits through 2020:Q2 (preliminary). Government receipts and expenditures unadjusted transactions from 1952:Q1 forward. GDP and income unadjusted transactions from 2002:Q1 forward. Many BEA series are downloaded via Haver Analytics.
Households and nonprofit organizations sector (tables F.101 and L.101) Estimates for this sector are largely residuals and are derived from data for other sectors. Data for consumer credit, which are estimated directly, are available through 2020:Q2. Internal Revenue Service Statistics of Income (IRS/SOI) data for private foundations and Section 501(c)(3-9) nonprofit organizations are available through 2016 (table B.101.n). Data on hedge funds from SEC forms PF and ADV through 2020:Q1 (table B.101.f).
Nonfinancial corporate business (tables F.103 and L.103) Quarterly Financial Report (QFR) of the Census Bureau through 2020:Q2; IRS/SOI data through 2018. Securities offerings, mortgages, bank loans, commercial paper, and other loans through 2020:Q2. Corporate farm data through 2019; USDA forecast through 2020:Q2.
Nonfinancial noncorporate business (tables F.104 and L.104) IRS/SOI data through 2017; bank and finance company loans, and mortgage borrowing through 2020:Q2. Noncorporate farm data through 2019; USDA forecast through 2020:Q2.
Federal government (tables F.106 and L.106) Data from the Monthly Treasury Statement of Receipts and Outlays and Monthly Statement of the Public Debt, and loan programs through 2020:Q2.
State and local governments (tables F.107 and L.107) Gross offerings and retirements of municipal securities, deposits at banks, nonmarketable U.S. government security issues, and MMF shares through 2020:Q2. Data for total financial assets from Census Bureau through 2017:Q2. Additional financial asset detail from comprehensive annual financial reports of state and local governments through 2011:Q2.
Monetary authority (tables F.109 and L.109) All data through 2020:Q2.
U.S.-chartered depository institutions (tables F.111 and L.111) All data through 2020:Q2.
Foreign banking offices in U.S. (tables F.112 and L.112) All data through 2020:Q2.
Banks in U.S.-affiliated areas (tables F.113 and L.113) All data through 2020:Q2.
Credit unions (tables F.114 and L.114) All data through 2020:Q2.
Property-casualty insurance companies (tables F.115 and L.115) All data through 2020:Q2.
Life insurance companies (tables F.116 and L.116) All data through 2020:Q2.
Private pension funds (tables F.118 and L.118) Internal Revenue Service/Department of Labor Form 5500 data through 2018. Investment Company Institute data through 2020:Q1. BEA annual actuarial liability data through 2019:Q4.
Federal government retirement funds (tables F.119 and L.119) Data from the Monthly Treasury Statement of Receipts and Outlays, the Thrift Savings Plan, and the National Railroad Retirement Investment Trust through 2020:Q1. BEA annual actuarial liability data through 2019:Q4.
State and local government employee retirement funds (tables F.120 and L.120) Detailed annual survey data through 2019:Q2 and quarterly survey data through 2020:Q1 from the Census Bureau. Investment Company Institute data through 2020:Q1. BEA annual actuarial liability data through 2019:Q4.
Money market funds (tables F.121 and L.121) All data through 2020:Q2.
Mutual funds (tables F.122 and L.122) All data through 2020:Q2.
Closed-end funds (tables F.123 and L.123) All data through 2020:Q2.
Exchange-traded funds (tables F.124 and L.124) All data through 2020:Q2.
Government-sponsored enterprises (GSEs) (tables F.125 and L.125) Data for Fannie Mae, Freddie Mac, FICO, REFCORP, Farmer Mac, FCS, FHLB through 2020:Q2.
Agency- and GSE-backed mortgage pools (tables F.126 and L.126) Data for Freddie Mac, Fannie Mae, Farmer Mac, and Ginnie Mae through 2020:Q2.
Issuers of asset-backed securities (ABS) (tables F.127 and L.127) All data for private mortgage pools, consumer credit, business loans, student loans, consumer leases, and trade credit securitization through 2020:Q2.
Finance companies (tables F.128 and L.128) All data through 2020:Q2.
Real estate investment trusts (REITs) (tables F.129 and L.129) All data through 2020:Q2.
Security brokers and dealers (tables F.130 and L.130) FOCUS and FOGS reports through 2020:Q2.
Holding companies (table F.131 and L.131) All data through 2020:Q2.
Other financial business (tables F.132 and L.132) Estimates for this sector are largely residuals and are derived from data for other sectors.
Rest of the world (tables F.133 and L.133) NIPA estimates, depository institutions Call Reports, and Treasury International Capital System through 2020:Q2. International transaction accounts through 2020:Q2 and international investment position through 2020:Q1.
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Last Update: September 21, 2020