Household Balance Sheets Remain Strong Despite Falling Savings

How are American Household Balance Sheets looking? Not too bad according to some recent numbers

At the end of August, figures from the US Commerce Department showed a worrying trend among consumers: Average household savings has plummeted by nearly half in two years.

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In June, the personal savings rate was 3.8%, down from 2015, when households were putting away 6.3% of after tax-income on average, according to Commerce’s Bureau of Economic Analysis. Falling savings rates at a time when the jobless rate is at a historically low 4.4%, and weekly earnings growth hit 2.5% in August, could point to problems ahead according to some economists. From the second quarter of 2015 to the second quarter of 2017, personal disposable income increased an average...