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

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by Mish Shedlock, Mish Talk:

Personal savings and the savings rate have plunged rapidly. Adjusted for inflation, its worse.

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.

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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 Rate from BEA, Real Savings Rates is a Mish Calculation using a PCE 2012 Price Index of 100

Personal Savings Rate from BEA, Real Savings Rates is a Mish Calculation using a PCE 2012 Price Index of 100

Synopsis 

  • 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.

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