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Personal Savings and the Savings Rate Continue to Crash From Stimulus Highs

Personal savings and the savings rate have plunged rapidly. Adjusted for inflation, its worse.
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Personal Savings from BEA, Real Savings is a Mish Calculation using a PCE 2012 Price Index of 100

Personal Savings from BEA, Real Savings is a Mish Calculation using a PCE 2012 Price Index of 100

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 Rate from BEA, Real Savings Rates is a Mish Calculation using a PCE 2012 Price Index of 100

Personal Savings Rate from BEA, Real Savings Rates is a Mish Calculation using a PCE 2012 Price Index of 100

Synopsis 

  • 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.

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Inflation Four Ways

PCE and Core PCE from the BEA, CPI and Core CPI from the BLS.

PCE and Core PCE from the BEA, CPI and Core CPI from the BLS.

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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