Two weeks ago we noted how the savings rate in the US had plunged to 3.1% in September 2017, its lowest rate since December 2007 which, coincidentally, was when the last recession started. Probably nothing. The September 2017 figure was less than half the most recent peak of 6.3% in October 2015. As we noted at the time, spending surged 1.0% month-on-month while personal incomes grew at a modest 0.4% and savings took the strain.
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In its latest US Economics Weekly, Citi asks ‘Can the savings rate keep falling?’. On the negative side, Citi notes how consumption has exceeded income growth since 2016, leading to a rapid decline in the personal savings rate, especially in 2016.
This post was published at Zero Hedge on Nov 14, 2017.
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