A Rebound in Personal Savings
The personal savings rate has been an extremely volatile time series in recent years, and certainly a cause for concern as it dropped essentially to zero in October, 2001. However, there have been some signs of life since May of last year. If we plot the ratio of personal savings to personal disposable income for the past 29 years, we obtain the following:
The current level is close to where it was in the late 1990’s and could possibly be seen as a reason for some optimism amidst the gloom of the deepening recession. We have a long way to go yet, but the apparent turn around is encouraging.
