U.S. personal saving rate falls to 2.7% as spending outpaces income growth

Americans saved 2.7% of their disposable personal income in June, according to the Bureau of Economic Analysis, pushing the rate closer to the lowest levels in the modern data series. Personal saving was estimated at an annualized $646.1 billion for the month.[1][2]

The rate fell because spending grew faster than income. Current-dollar personal income increased $54.9 billion, or 0.2%, while personal consumption expenditures rose $65.2 billion. The spending gain consisted of $58.2 billion in services and $7 billion in goods.[1]

A low saving rate can reflect consumer confidence and a willingness to spend, but it also means households are adding less to financial buffers. That can make aggregate spending more sensitive to job losses, higher borrowing costs or another inflation shock, especially for families without substantial liquid assets.[3][2]

The measure is an economy-wide ratio, not a statement that every household saves 2.7% of its income. It combines very different financial positions and can be revised as the government receives more complete income and spending data.[1][3]

The June reading sharpens the tension in the consumer outlook: household spending is still expanding, but increasingly with a thinner aggregate cushion. Subsequent income, labor and credit data will show whether the decline stabilizes or households continue drawing down their capacity to absorb shocks.[1][2]