As prices for everyday purchases continue to surge in the United States, many families struggle to make ends meet. And even among those who manage to keep their standard of living and pay all their bills, something’s got to give.
According to data from the U.S. Bureau of Economic Analysis, Americans are now saving less than at any point since the Great Recession, indicating that money is indeed getting tight in many households that are feeling the sting of sky-high prices for food, fuel and housing.
In September, Americans saved just 3.1 percent of disposable personal income, which is down from 7.9 percent in September 2021 and the second lowest rate since April 2008, when the country was in the middle of the Great Recession.
As the following chart shows, the latest decline in the personal saving rate comes after an unusual surge in savings amid the Covid-19 pandemic, when several rounds of stimulus checks bolstered Americans’ earnings at a time when lockdowns or other restrictions limited spending opportunities.