Where will the U.S. saving rate go?
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Publication Date:
March 30, 2010
Increases in the personal saving rate can lead to weak economic growth, due to the
negative impact saving has on consumption patterns and lack of compensating effects from higher investment. In the past 30 years, the personal saving rate in the United States decreased from about 10 percent to less than 1 percent in 2005, staying low until a recent spike to 5.4 percent. While the saving rate actually declined again over the past two or three quarters to reach 3.1 percent in February, this lower rate is not likely to last beyond the short term.
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