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Savings Rate

All articles tagged with #savings rate

economy2 days ago•22 min saved

Savings Slump Signals Fragile Ground Beneath U.S. Growth

A BEA/BEA report shows the U.S. personal savings rate fell to 2.6% in April (the lowest since June 2022) while core retail spending rose 5.7% year over year and personal income grew 2.5%. The gap between spending and income widened to 3.2 percentage points, meaning Americans are drawing down savings to maintain living standards. Even with strong markets and low unemployment, this shrinking cushion suggests consumer-driven growth may be unsustainable and could pose risks to the economy and to the political narrative surrounding Trump’s agenda.

via 24/7 Wall St.|

#bea-data #consumer-spending #core-retail-sales

business3 days ago•13 min saved

US Savings Fall Signals Strain Behind Spending Boom

New BEA data show the U.S. personal savings rate fell to 2.6% in April—the lowest since June 2022—while core consumer spending rose 5.7% year over year and personal income increased 2.5%, meaning households are funding higher living costs by drawing down savings. With the cushion shrinking, the economy looks sturdy on the surface but faces growing strain that could complicate President Trump’s economic agenda even as markets stay energized.

via Yahoo Finance|

#bea #business #consumer-spending

economy2 years ago•1 min saved

Strong Consumer Spending and GDP Surge Defy Recession Forecasts

Consumer spending in the U.S. rose sharply by 0.7% in September, exceeding expectations and indicating the strength of the economy. Outlays grew by 4% in the third quarter, the largest increase since 2019 excluding pandemic years. However, after adjusting for inflation, incomes fell for the third consecutive month. Americans spent more on services, including travel and healthcare, but rising costs of necessities played a role. Consumer spending adjusted for inflation increased by a more modest 0.4%. The savings rate declined to 3.4% from 4%, leaving households with less financial cushion. The PCE price index, a key inflation measure, rose higher than expected by 0.4% in September. Despite expectations of a slowdown in spending, a strong jobs market is likely to support continued economic expansion.

via MarketWatch|

#consumer-spending #economy #inflation

finance2 years ago•2 min saved

"Stock Market Rally Propels 401(k) Savers to Millionaire Status"

The stock market's resilience in the first half of 2023 has contributed to gains for 401(k) savers, with the average balance increasing by 4% from the first quarter and 8.3% from the second quarter of last year, according to Fidelity Investments. The average balance for individual retirement accounts (IRAs) also rose by 5% from the first quarter. The strong performance of the stock market, along with a savings rate of 13.9%, has helped boost retirement account balances.

via Yahoo Finance|

#401k-savers #finance #resilient-economy