Americans haven’t been stashing money into their savings accounts like they used to, according to government statistics. That’s part of the reason why consumer spending has been so robust since the economy ascended from pandemic depths, despite high inflation and elevated interest rates. But when saving slows (or stops), it puts households in a vulnerable position, especially those with low incomes, economists say.
The personal saving rate fell to 3.6% in February, the lowest level in more than a year, and in recent years it has hovered below levels seen in the decade before 2022.
That may just be a continuation of a long-term trend: Americans “have consistently saved less in the aftermath of each recession than they did in the prior cycle,” according to an analysis from Wells Fargo economists released Thursday.
Bryan Mena | CNN