US personal savings rate fell to 4.2% in September, lowest since October 2022, as consumer spending outpaces income growth.
Macro & Markets ·
The US personal savings rate fell to 4.2% in September, its lowest level since October 2022, marking a 0.2 percentage point decline from the prior month. Personal income growth slowed to 4.1% year-over-year while personal consumption expenditures accelerated to 6.3% year-over-year, widening the gap between spending and income. Since January 2024, the savings rate has contracted 3.4 percentage points and now sits well below the pre-pandemic five-year average of 6.2%, signaling increased household reliance on borrowing to sustain consumption levels.