Free Trial

Higher Household Savings Ratio Also Leans On Consumption Growth

US DATA
  • Along with higher than first thought PCE deflators, softer real consumption growth in Q4 also came with an uptick in the household savings ratio with real disposable income growth revised up from 3.3% to 4.8% annualized, still strongest since 1Q21).
  • Rather than the 2.9% in Q4 after 2.7% in Q3 implied by the latest monthly data, the savings ratio instead is seen to have increased from 3.2% to 3.9%.
  • To be clear though, it’s still far below pre-pandemic levels and on prior Fed methodology continues to run down excess savings built up over the pandemic but still only to about half their peak.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.