Article Image
IPFS News Link • Economy - Economics USA

Personal Savings and the Savings Rate Continue to Crash From Stimulus Highs


The BEA's Personal Income and Outlays report for April shows the Personal saving was $815.3 billion in April and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.4 percent.

Real Disposable Personal Income (DPI) increased less than 0.1 percent in April but Real Personal Consumption Expenditures (PCE ) spending increased 0.7 percent.

Real wages did not keep up with spending.

Personal Savings Rate and Real Personal Savings Rate


Personal Savings: $815 Billion

Real Personal Savings: $672 Billion

Personal Savings Rate: 4.4 Percent

Real Personal Savings Rate: 3.6 Percent 

These  numbers would look much worse if adjusted by the CPI rather than the PCE price index.

For discussion of the above chart, please see CPI Year-Over-Year Drops a Bit, But Is it Believable?

For the latest housing adjusted CPI, please see Case-Shiller Home Prices Reach New Record High, But This is Rear View Mirror Look

Savings are by he high wage earners. The bottom end has fallen back in love with credit cards. 

Thanks for Tuning In!

Please Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.