Personal saving rate dips amid strong consumer spending
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U.S. consumer spending gained steam from June to July, helping push the personal saving rate down to 2.9% last month.
Why it matters: The savings rate — the amount of money people are putting away as a percentage of disposable income — dropped to its lowest level since June 2022.
By the numbers: The Commerce Department this morning released data indicating that personal income rose 0.3% last month — an increase driven by salaries and wages.
- At the same time, consumption spending growth rose from 0.3% in June to 0.5% in July.
The big picture: Americans made more money, even after inflation, and their spending shows no signs of buckling, Axios' Neil Irwin writes.
💠Hope's thought bubble: Worse comes to worst, there's always money in the banana stand, right?
