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Home Our Perspective Economics Chart Of The Day: Savings Rate Drops To December 2007 Levels
Chart Of The Day: Savings Rate Drops To December 2007 Levels PDF Print E-mail
Written by Ron Rebner   
Friday, 28 October 2011 08:46

Wondering how it was possible for Q3 GDP to post such a substantial beat yesterday driven by a surge in Personal Consumption expenditures? Wonder no more: in the last quarter, the US consumer literally tapped out, bringing their savings rate from a 2011 high 5.3% in June to 3.6% in September, after the BEA reported that while spending increase was in line with expectations at an unsustainable 0.6%, income was just barely above unchanged at 0.1% on expectations of 0.3% confirming that as far as the economy is concerned, the consumer is just getting worse and worse off.

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