The latest savings rate data showed that the personal savings rate for U.S. households edged up to about 3.9% in May.
On the bright side, this shows that Americans haven’t felt the need to cut back on spending in recent months and are actually socking away a few extra bucks for a rainy day.
The less optimistic view? The chart above shows that the current personal savings rate of 3.9% is still well below the pre-pandemic average. When viewed this way, this data suggests that a lot of Americans are still struggling to make ends meet.
This will be an important metric to keep an eye on in the coming months, as it will give us a good idea of how financially secure most American households are.
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Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly.
Past performance does not guarantee future results.