Chart of the Week: US Household Debt Amount vs US Household Debt Percent of GDP

Chart of the Week | September 27, 2021
Macro Insights

US Household Debt Amount vs US Household Debt Percent of GDP

  • US household debt had increased steadily since 2011 as the M2 money supply also increased with the pandemic showing the steepest increases.
  • US household debt has surpassed 2008 levels, causing some to fear a recession is looming.
  • However, even though household debt amounts have increased marginally, the US household debt percent of GDP has gradually decreased (despite a COVID-19 spike which has already started to downtrend).
  • Since a high US household debt percent of GDP foreshadows recessionary concerns, the current higher debt levels do not appear to be structurally problematic in the near term since the debt’s percent of GDP has normalized into a downtrend.
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Hunter Frey is an Analyst at Catalyst Capital Advisors, LLC and Rational Advisors Inc. covering all in-house equity strategies and an insider buying income-oriented strategy at Catalyst Funds. Mr. Frey received a Bachelor of Science degree in International Business with a focus in Spanish from Gardner-Webb University, Godbold School of Business, and is in pursuit of a Master of Business Administration in Economics and Finance from New York University, Stern School of Business.

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