Economic Perspectives

Domestic Consumers: Bigger Savers Than Previously Thought

Authored by Brian Jones, FHLBNY Financial Economist

Highlights

August 2018

• U.S. Personal Savings Rate Much Higher than Previously Thought
• Domestic Consumers Saving Considerably More Since the Great Recession
• Adjustments to a Variety of Components Boosted Personal Income Estimates
• Lower Personal Tax Payments and Consumer Outlays Also Added to Personal Saving
• Revised Personal Saving Rate Now Closer to Flow-of-Funds Measures
• Increases in Household Net Worth Are Yet Another Positive Saving Development
• Tight Labor Markets and Healthier Savings Behavior Will Continue to Buoy Spending

American consumers have long been chided for their allegedly extravagant ways. With few exceptions, the percentage of funds saved out of personal disposable income by domestic residents has lagged behind those of other industrialized nations and even-larger groupings such as the Euro area or the European Union…

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