Following the tremendous macroeconomic pressure facing the country’s financial outlook, data shows that the US personal savings rate dropped to 3.7% in 2022. Moreover, that figure represents its lowest since 2007.
The US savings rate is indicative of the nation’s disposable income and could factor into understanding the overall health of an economy. Conversely, the figures released for 2022 paint a grim picture of what that means for the US financially.
US Savings Plummet in 2022
The United States economy has been an undeniable point of observation thus far in 2023. Specifically, macroeconomic pressure continues to engage the Federal Reserves’ year-long fight against inflation, and the national debt issue continues to loom over economic action taken on capitol hill.
Yet, one figure has emerged that seems to articulate the country’s economic fragility from a citizen’s perspective last year. Then, the US personal savings rate dropped to 3.7% in 2022, standing as the nation’s lowest since 2007.
Finder released metrics on the US personal savings data, discussing the unprecedented position of the figure in 2022. Nevertheless, stating that “disposable income neared historic lows in 2022 and is only doing slightly better in 2023.” Additionally, noting that through February of 2023, Americans are saving 4.5% of their disposable income.
Comparatively, 2020 saw US citizens save 17% of their disposable income, a far cry from the figures shown in the last two years. Yet, the US Bureau of Economic Analysis defines personal savings as disposable income after spending money, bills, loans, or taxes. Thus, it seems clear the effects of inflation are being felt by the average American.