A drop in savings among Americans and a record amount of credit-card debt could spell disaster for the country’s economy should a recession hit the U.S. in the coming months or next year, according to experts.
Recent data from the U.S. Bureau of Economic Analysis shows the country’s personal savings rate has remained historically low in 2023 compared to the previous year. In July, the latest data available, the rate was 3.5 percent, down from 4.3 percent in June and 4.7 percent in May.
The amount of savings put away by Americans is generally higher than in summer of last year, when it reached a record low of 2.7 percent in June 2022. But it remains much lower than the average annual rate of 8 percent, based on the bureau’s data going back to 1959.
The idea that many people might be struggling with their finances is backed up by the fact that Americans have recently collected a record amount of credit-card debt, a total of $1 trillion as of August.
Read more at Newsweek.com
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