Households in the Albany region did not accumulate as much debt as did households in the rest of the state and country during the run-up to the crisis. Recent data indicate that the average adult in Albany has about $ of debt, which is about 20 percent lower than the average across the state and country as a whole. Thus, financial strains on many families in the Albany area were lower than in many other places around the state and nation. However, the number of delinquencies did rise significantly during the recession in the area, so it is clear that some households face strong financial pressures. About 4 percent of debt balances currently are 90+ days past due in Albany, which is twice the 2 percent delinquency rate in 2005. Although this is less than half of the rate in New York State or the nation, this doubling of delinquencies in the Albany area still troubles me as a sign of heightened distress for many families here. Stepping back from the current challenges, the capital region possesses a number of fundamental strengths. These strengths show through in some key ways:   Albany is growing. The recent Census shows that the population in the region expanded by 5.5 percent over the past decade, more than double the statewide average. Saratoga County saw an especially strong gain of nearly 10 percent.   Incomes in the region are high. Albany is the state’s most affluent area outside the New York City metropolitan region.
This trip includes meetings with the people at the SUNY Nanotech Center, Global Foundries (an advanced microprocessor plant), the Capital Region Economic Development Council, and the Rensselaer Polytechnic Institute. At the New York Fed, we continually track conditions in our District, and we have created a number of tools for that purpose. For example, my staff produces monthly indexes of economic activity for New York City, New Jersey and New York State. These indexes are essentially local measures of output – similar to gross domestic product, or GDP at the national level. These measures provide a more complete gauge of activity than the employment report, which is the only other available metric at the state level. We have also started a consumer panel to track local household credit conditions, including the amount and type of debt owed by an average person and whether payments are being made in a timely way. In addition, we have a new poll about credit and financing for small businesses, the latter are an important source of new jobs. The survey asks firms about credit applications and reasons for not seeking credit. Almost 900 regional businesses responded to our May 2011 poll, of which nearly 15 percent were from the upstate region. The next poll will be in January. If you, as part of a small business, would like to participate in our January poll, please pass your card to my colleagues in the audience.