Americans’ average personal savings rate hit an eight-month high in February, a Bureau of Economic Analysis (BEA) report released Friday reveals.
Personal income rose a seasonally-adjusted 0.8% in February from the previous month, while disposable personal income (DPI), which excludes current taxes, increased 0.9% from January.
Meanwhile, personal consumption expenditures increased less than DPI, rising 0.4% from January. As a result, the nation’s personal saving rate - personal saving as a percentage of disposable personal income - was 4.6%, up from 4.3% in January.
February’s personal savings rate was the highest since last June, when it was 4.8%.
Last year, the nation’s personal savings rate fell more than two percentage points, from 5.5% in January to 3.3% in December.
During the Biden Administration, the average personal savings rate plummeted 63%, from 12.6% on February 1, 2021 to 4.6% on January 1, 2025. In contrast, the personal savings rate increased 129%, from 5.6% to 12.6%, during the first Trump Administration.
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