Sunday, February 28, 2010

Long Term Trend in Personal Savings

Ahead of tomorrow's personal savings release, lets be reminded of the longer term trend...

While the savings rate has turned up to ~5% since bottoming in early 2008, we are still a long way off from the 8-10% level seen from the early 1960's to mid-1980's. It is also important to note that paying down debt liabilities is included in the above savings rate, thus the actual amount "saved" has not actually been this high in recent months as the consumer delevers.