The BEA's Personal Income and Outlays report for April shows the Personal saving was $815.3 billion in April and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.4 percent.
Real Disposable Personal Income (DPI) increased less than 0.1 percent in April but Real Personal Consumption Expenditures (PCE ) spending increased 0.7 percent.
Real wages did not keep up with spending.
Personal Savings Rate and Real Personal Savings Rate
- Personal Savings: $815 Billion
- Real Personal Savings: $672 Billion
- Personal Savings Rate: 4.4 Percent
- Real Personal Savings Rate: 3.6 Percent
These numbers would look much worse if adjusted by the CPI rather than the PCE price index.
Inflation Four Ways
For discussion of the above chart, please see CPI Year-Over-Year Drops a Bit, But Is it Believable?
For the latest housing adjusted CPI, please see Case-Shiller Home Prices Reach New Record High, But This is Rear View Mirror Look
Savings are by he high wage earners. The bottom end has fallen back in love with credit cards.
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