Private Sector Savings Rising

dfxor — Wed, 01 Apr 2009 02:36:37 +0000

The February savings rate was quite encouraging again. If it stays in the 2-4% range, it would appear to be a silver lining to the current recession.

The above plot is for monthly personal savings relative to disposable income (seasonally adjusted) since 1990. I would expect some additional trends to set in after the baby boomers start to retire, but in the short term the bounce back from 2006-2008 is a pleasant surprise.