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Americans Are Spending More, Saving Less - ABI

Americans are saving less as the economy and stock market heat up and they boost their spending on big-ticket items, the Wall Street Journal reported today. The U.S. saving rate fell to a 10-year low of 3.1 percent in September, down from a recent peak of 6.3 percent in October 2015, the Commerce Department said yesterday. The saving rate has now sat below 4% for seven straight months. It likewise hovered at low rates in the late 1990s, when stock prices soared and the jobless rate fell below 5 percent, and again in the mid-2000s, when home prices soared and the unemployment rate again dropped.  The Commerce Department report showed that household spending on durable goods rose 3.5 percent in September, adjusted for inflation, and at a robust 8.3 percent inflation-adjusted annual rate for the third quarter, after 7.6 percent annualized gain in the previous three-month period.

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