U.S. personal savings rate drops to 2.6% as inflation outpaces wage growth
By
Kamaron McNair
2d ago· 3 min readenNews
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Summary
The personal savings rate in the U.S. fell to 2.6% in April 2024, the lowest level since 2022, as inflation continues to outpace wage growth. This marks a sharp decline from 3.2% in March and 5.8% a year earlier. Economists express concern that Americans are depleting their ability to save for emergencies as the cost of everyday living rises faster than incomes.
Key quotes
· 2 pulledI thought 2.6% for April was a typo at first. It is so low.
Outside of the revenge spend era of 2022, the personal savings rate has not been this low.
As inflation starts outpacing wages again, Americans have less money to put aside for emergencies and other savings goals.
