The U.S. Department of Commerce put out this information on Friday. The personal savings rate, which is how much of a person’s extra income is saved, went up from 4.8% in February to 5.1% in March.
The economy is still finding its new normal (Peoples Observation). People are spending less and putting money away in case something bad happens.
In March $1 trillion in personal savings was up from February’s $915.8 billion.
This is a change from the end of last year when the personal savings rate fell to its lowest level since the Great Recession and the eighth-lowest quarterly rate on record (since 1947). In the third quarter, 3.3% of people saved money.
Janet Lee Krochman told, “The data show that the economy is still moving along, trying to find its new normal as the post-pandemic period continues to roll out.”
Even though people’s spending seems to be staying the same, better incomes may have allowed more people to save.