Savings Rate Tumbles Back Near Record Lows As Americans Spend More Than They Make For 28th Month In A Row

Savings Rate Tumbles Back Near Record Lows As Americans Spend More Than They Make For 28th Month In A Row

While US personal incomes grew, as expected, at 0.3% MoM, Americans remained on a spending spree (up 0.6% MoM). For the 28th month in a row, YoY growth in spending outpaced incomes, sending the savings rate back down to just 2.8% – close to record lows.

Spending YoY is the highest since April 2017…

Savings Rate Tumbles Back Near Record Lows As Americans Spend More Than They Make For 28th Month In A Row

 

On the income side:

  • Private sector wages rose 4.9% YoY vs 5.0% in March
  • Government wages accelerated to +2.6% YoY, vs 2.5% in March

 

Savings Rate Tumbles Back Near Record Lows As Americans Spend More Than They Make For 28th Month In A Row

 

And at the end of all this, spending more than you’re making sent the savings rate back down near record lows…

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