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Personal Savings Rate Sub-3%, Only Ever Lower in Mid-2005

US DATA
  • Supporting the upward revision in consumption in the 2nd Q3 GDP release was another downward revision in the savings ratio.
  • The savings ratio, first indicated at an average 3.3% in the monthly figures, is now seen at 2.8%, a level where it has only ever been lower in Spring 2005 in data going back to 1959 (albeit a dataset prone to sizeable revisions).
  • This level will rapidly reduce excess savings built up over the initial pandemic period.

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