U.S. savings rate hits record 33% as coronavirus causes Americans to stockpile cash, curb spending

By Maggie Fitzgerald of CNBC. Excerpts:

• The personal savings rate hit a historic 33% in April, the U.S. Bureau of Economic Analysis said Friday.
• “There is a tremendous uncertainty and virus fear that is lingering and that is restraining people’s desire to go out and spend as they normally would,” said Gregory Daco, chief U.S. economist at Oxford Economics. 
• With the U.S. consumer accounting for more two-thirds of the economy, the economic recovery depends on whether the increase in savings is a result of shutdowns or structural changes in consumer habits, analysts said. 
• The increase in savings came as spending declined by a record 13.6% for the month.

"The coronavirus crisis has Americans hoarding more money than ever as widespread fear paralyzes consumer spending habits.

The personal savings rate hit a historic 33% in April, the U.S. Bureau of Economic Analysis said Friday. This rate — how much people save as a percentage of their disposable income — is by far the highest since the department started tracking in the 1960s. April’s mark is up from 12.7% in March."

"The previous record savings rate was 17.3% in May 1975, according to FactSet. The savings rate was elevated above 13% throughout most of the early 1970s. The increase in savings came as spending declined by a record 13.6% in April."