Moreover, delinquency rates on mortgages and on all other types of household loans have exceeded the peak rates recorded in the previous downturn in 2002-2003. US corporate sector The delinquency rates on US commercial and industrial loans also picked up but have remained lower than those on household loans and well below the levels reached during the 2002-2003 recession.
This suggests that the US corporate sector has proven relatively resilient to the turmoil thus far. However, the outlook for the US non-financial corporate sector has deteriorated. As shown in Chart 2, US corporate profits fell further in the second half of 2008. Both domestic profits and those from the rest of the world contributed to the decline on a year-on-year basis.