From Marketwatch:
With disposable incomes rising faster than spending, the personal savings rate rose to 5%, the highest since March 1995. At an annual rate, personal savings rose to a record $545.5 billion.
A year ago, the personal savings rate was 0.1%.
"The rise in the savings rate has very positive long-term implications but in the meantime is destructive," wrote Tony Crescenzi, chief bond market strategist for Miller Tabak & Co.
The savings rate could go even higher, with consumers trying to pay down their debts, live within their means and boost their savings to make up for their lost wealth. The savings rate "has a long way further to go," said Ian Shepherdson, chief domestic economist for High Frequency Economics.
Creszenzi figured consumers might go back to saving about 9% of their disposable incomes, the savings rate that prevailed from the 1950s through the early 1980s.
Creszenzi figured consumers might go back to saving about 9% of their disposable incomes, the savings rate that prevailed from the 1950s through the early 1980s.
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