So, is that it then? Are we already deciding that this whole “savings” this is just not that much fun? Two data points make a trend, as that hoary journalistic saying goes, and we have now had two months in the U.S. of declining monthly personal savings (according to BEA data).
Maybe, but I’m not there yet. This is more likely a bounce off a record low level of discretionary spending, not a return to bygone days of declaring one’s credit cards as personal savings. Of course we could see a temporary flatlining in here at 4-5%, but I’m guessing that a year from now, all economic else being equal, the U.S. personal savings rate will be higher than it is today.
Anyone want to take the other side? Make your case.