Personal Savings Rate was negative again, now for the fifth month in a row, at -0.7%.
The saving rate, the percentage Americans sock away after spending, taxes and interest payments, was minus 0.7 – the fifth straight negative reading. The saving rate has not been positive since March.
Personal Income also came in a notch below estimates.
Personal income also rose in October, by 0.4 percent – slightly less than the 0.5 percent increase forecast by Wall Street
Here is a direct link to the BEA report:
Personal saving — DPI less personal outlays — was a negative $61.5 billion in October, compared with a negative $70.9 billion in September. Personal saving as a percentage of disposable personal income was a negative 0.7 percent in October, compared with a negative 0.8 percent in September. Negative personal saving reflects personal outlays that exceed disposable personal income. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods. For more information, see the FAQs on “Personal Saving” on BEA’s Web site.
Keep in mind this is October data.. With consumer spending still rolling along at a brisk pace, I’m sure the November and December data won’t be pretty either.