Inflation adjusted disposable income fell 0.03% during the month, contributing to the financial pressure on American households. The decline also pulled the five year average for the US savings rate to its lowest point since 2012. While some economists attribute the trend to Baby Boomer retirements, others point to a broader year long decline in the ability of consumers to save.
Tuesday, October 20, 2026
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US Savings Rate Drops to 4.1% for First Time Since 2022
US Markets20 days ago
American consumer spending increased 0.9% in August while total personal income rose only 0.2%, missing the 0.5% estimate from economists. This disparity pushed the US personal savings rate down 0.5% to 4.1%, the lowest level for households since November 2022. The data suggests that consumers are increasingly relying on credit or drawing down existing assets to fund purchases as income growth fails to keep pace with outlays.
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