Savings on the Rebound?

Chart of the Week for December 3-9, 1999

Americans may be saving more for a rainy day . . . or for holiday spending. The personal savings rate, which is calculated by dividing personal savings by disposable personal income, bounced back above 2% in October 1999 after a long downhill haul since December 1992. Perhaps the Y2K bug has scared investors into hoarding their cash.

Data obtained by Bloomberg from the Department of Commerce Bureau of Economic Analysis. Statistics have been compiled since 1959 and are chain-weighted in 1992 dollars and seasonally adjusted.

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