Savings Struggle

23Q3 GDP was up 4.9% on an annualized basis with 2.7 percentage points of the increase due to very strong consumer spending. This looks unsustainable because real disposable income has fallen four straight months. That said, spending is strong partly because savings have fallen from an already low 4.9% of disposable income in June, to 4.1% in July, 4% in August, and 3.4% in September. Pre-Covid it was 7.5%.