What's Behind the Low U.S. Personal Saving Rate?
FRBSF Economic Letter #2002-09 dated March 25, 2002

In recent years, the personal saving rate in the United States has fallen sharply, and compared to U.S. historical rates or other industrialized countries is at a very low level. Current research by Senior Economist Milt Marquis examines the causes and consequences of the sharp decline in the U.S. personal saving rate, and whether there is reason to expect that it will remain low.

Milt Marquis, Senior Economist
Federal Reserve Bank of San Francisco

Now available on the Internet at:
www.frbsf.org/publications/economics/letter/2002/el2002-09.html

From 1980 through 1994, the U.S. saving rate averaged 8%; thereafter it fell steeply, and since mid-2000, with allowance made for the tax rebates that boosted household saving in the months of July, August, and September 2001, it has averaged approximately 1%.

Will the low personal saving rate persist, and is it cause for concern? Business reporters researching personal finance trends and seeking neutral, third-party input to bring perspective to their stories may wish to contact Senior Economist Milt Marquis directly at (415) 974-3481 or Milton Marquis.

Lily Ruiz, Media Relations
Lily Ruiz
(415) 974-3240