US personal savings rate fell to 4.1% in August 2024, the lowest since November 2021, signaling household financial stress amid persistent inflation.
Macro & Markets ·
The US personal savings rate fell to 4.1% in August 2024, marking its lowest level since November 2021 and declining 0.5 percentage points from the prior month. Since January 2025, the rate has dropped 1.6 percentage points, and excluding the 2022 inflation-driven decline, it has reached its lowest point since 2008. The five-year average savings rate fell to 5.4%, the lowest in 14 years, compared to a pre-pandemic average near 6.0%, indicating households are drawing down savings amid continued inflation.