Strong Savings

As government stimulus slowly fades, the personal savings rate has generally declined from a one-month peak of 33.8% in 4/20 to the current rate of 9.4%, slightly above the pre-covid rate of 7.5%. This suggests that the abnormal addition to savings from stimulus checks and the lockdown is ending. While the added savings exceeds $2.0 trillion, the question now becomes how quickly and how much of it gets spent.