America's Savings Rate Has Collapsed

From the just released personal income and spending report:

Personal saving — DPI less personal outlays — was $438.7 billion in February, compared with $509.5 billion in January. The personal saving rate — personal saving as a percentage of disposable income — was 3.7 per cent in February, compared with 4.3 per cent in January.

For some context, here’s a look at the personal savings rate going back a few years.

It doesn’t have this latest month updated yet, but as you can see, we’re getting back towards pre-crisis levels.

chart

A possible interpretation is that Americans are spending more money on gasoline, but not yet cutting back elsewhere.

For some other interesting insight into the latest look at personal spending and income, see here >

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