Monthly · BEA via FRED
The Personal Savings Rate reveals whether Americans are building financial buffers or spending everything they earn - and it is one of the most important indicators of consumer vulnerability to an economic shock. A high savings rate means households can absorb job losses or income shocks without immediately cutting spending. Published monthly by the Bureau of Economic Analysis as part of the Personal Income and Outlays report.
The 30-year pre-pandemic average was around 7%. Above 8% suggests households are building buffers - either from caution or a surge in income like stimulus. Below 4% means consumers are spending nearly all their income, sometimes by drawing down savings or adding debt, which is unsustainable. The savings rate fell to 2.9% before the 2008 recession as consumers maxed out credit. Watch the trend alongside real disposable income - falling savings plus flat income means the consumer is living on borrowed time.
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