Can this be considered news anymore? Seems the American Consumer has no need to save money anymore.
Because the rise in spending matched the increase in incomes, the savings rate held at a minus 0.2 percent for a second month. A negative rate suggests consumers are dipping into savings to maintain spending.
Why bother saving? You’d be a fool. Save for a home down payment? Don’t need one anymore. Save money for a car? No money down lease! Save money for retirement? Nah, we’ll just sell our house and retire on the gains. Save for college expenses? Let the kids take out their own student loans.
Personal Savings Rate
By the way, past months numbers are being sharply revised downwards. The preliminary for August was something on the order of only -0.7% when it was initially released as a preliminary number. It’s since been revised downward, first to -2.2% and again to -3.4%. So if the last two months numbers are starting to look benign, I’d wait to see whether or not these are significantly revised downward in the future as well.
Eight months most certainly makes a trend.