Monday, October 31, 2005

Savings Rate Negative Again

The personal savings rate for September was released at 8:30am this morning.

Personal Income and Outlays

Savings rate was again negative, for the fourth month in a row, at -0.4%. The August savings rate was revised downward from somewhere around -0.7% to -1.8%. The American Consumers are continuing on their consumption and spending binge, dipping further into savings to finance the party. While incomes did increase a bit this month, spending increased as well (a very American concept: I Make, Therefore I Spend).

As we move into the holiday spending season with energy prices rising, this figure looks to stay in negative territory for the next few months. How long can the spending and credit binge continue?

Caveat Emptor,
Grim

9 Comments:

Blogger grim said...

Interesting, even the July savings rate numbers were adjusted downward from -1.1 to -1.2.

-Grim

10/31/2005 09:05:00 AM  
Anonymous Anonymous said...

The disaster is going to crush the herdlike public who bought into the ponzi scam of extracting home equity and spending.

Many just do not realize how financially broke they are.

10/31/2005 05:14:00 PM  
Anonymous Anonymous said...

How does this work? The average joe spent more than he put in his savings accounts?

11/06/2005 09:54:00 PM  
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