Americans are saving just 3.8% of their income, the lowest rate since 2022, as spending continues to outrun income growth

The US personal savings rate fell to 3.8% in September, down from 4.0% in August and 5.1% a year earlier. That’s well below the 6.2% average cited for the five years before the pandemic. Americans saved $911.1 billion in September, while personal consumption spending jumped $113.1 billion in a single month. Personal income rose just 0.2%. The squeeze is showing up in household finances: people are still spending, but a much smaller share of their income is being set aside. The savings rate has now fallen for 2 consecutive months and is back near levels last seen in 2022.