US consumers are seeing historically low savings rates: The US personal savings rate has declined -1.0 percentage point over the last 5 months, to 4.7%, the lowest since December 2024. This is the 2nd-lowest reading since December 2022. By comparison, the 5-year average before the pandemic stood at 6.1%, while the last 5-year average was 6.5%. During the 1980s, savings as a % of disposable personal income averaged 9.8%. This comes as declining wage growth and persistent inflation have squeezed household budgets, pushing savings lower while consumer debt continues to hit records every quarter. The K-shaped economy is widening.