Americans’ Savings Rate Drops to Lowest Since 2008 as Inflation Bites

Americans are saving at the lowest rate since the onset of the global financial crisis, underscoring consumers’ willingness to spend even in the face of decades-high inflation.

The personal savings rate as a share of disposable income dropped to 4.4% in April, the lowest since September 2008, according to data from the Bureau of Economic Analysis released Friday. The report also showed that inflation-adjusted spending remained strong despite elevated, yet moderating price pressures.