SAD SAVINGS

Over the last year real consumer spending has risen 2.1%, which is slightly below the past decade’s average. The problem is personal income; over the past year it hasn’t grown. What’s propped up spending is the equities melt-up and a collapsing savings rate that’s just 2.6% of disposable income. Since 1/1/1959 it’s been lower for only 17 months. Pre-Covid the rate was well more than double the current rate.