According to government statistics, Americans have not been saving money as they had once in the past. The personal saving rate fell to 3.6% in February, the lowest level in more than a year, and in recent years it has hovered below levels seen in the decade before 2022. “The saving rate itself is capturing this change in behavior that is here to stay until there’s some sort of event or shock that causes consumers to change their behavior,” said Shannon Seery Grein, an economist at Wells Fargo.
Future concerns: While good for the near-term economy, the recent drop in saving statistics is somewhat worrisome because households technically won’t have as much at their fingertips come a downturn or shock that hits the household sector, leaving them more financially vulnerable.
