|Stockpiling cash, spending less, and closely monitoring the uncertainties at hand seems to be the trend for consumers in the current climate...|
As Americans adjust their spending habits in a rapidly changing economy, they are building cash reserves at an unprecedented rate.
The Bureau of Economic Analysis reported on May 29th that the personal savings rate hit a historic 33% in April. To put that into perspective, it’s the highest number since the Bureau started tracking personal savings in the 1960s.1
Economists are struggling with the question: “When will consumers be confident enough to start spending some of that cash stockpile?”
We believe there is some merit in both schools of thought.
We will be watching the personal savings rate alongside other economic indicators to see what, if any, long-term trends emerge.
If you’d like to discuss your personal savings rate or how to better manage your money now, please give us a call. We’d welcome the chance to hear about any changes you have made in recent months.
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1. CNBC.com, May 29, 2020
An Unprecedented Rush to Cash
June 08, 2020