US households' savings rate falls to 2022 low as real income declines
Updated
Updated · Barron's · Apr 30
US households' savings rate falls to 2022 low as real income declines
12 articles · Updated · Barron's · Apr 30
The savings rate fell to 3.6% in March, while real disposable income slipped 0.1% for a second month and national average gasoline prices stood at $4.30 a gallon.
Consumer spending still grew at a 1.6% annualised pace in the first quarter, but restaurant spending rose just 0.1% in March as inflation and slower wage growth squeezed discretionary budgets.
Economists say households are increasingly relying on savings, credit and asset gains to cope, though a 4.3% unemployment rate and 189,000 initial jobless claims suggest the labour market remains broadly stable.
With unemployment at a 50-year low, why are American savings plummeting and household debt delinquencies surging?
As consumer spending falters, can the massive AI investment boom single-handedly prevent a U.S. economic downturn?
As the economy splits into two tracks, are temporary tax cuts enough to prevent a permanent decline for lower-income households?