US Savings Rate Plummets as Consumer Debt Surges, Retail Sales Pop

The personal savings rate has been on a downward trend since hitting an all-time high during the pandemic, fueled by higher consumer prices, real wage growth falling behind the cost of living, and rocketing borrowing costs. In November, the personal saving rate—a percentage of disposable personal income—was 4.1 percent. It has been below 5 percent since June 2023. Net saving as a percentage of gross national income has been in negative territory for three consecutive quarters, clocking in at negative 0.7 in the July-to-September period. Since 1947, this figure has only contracted three times: the Great Recession, the first quarter of 2011, and the COVID-19 public health crisis....