The U.S. personal savings rate fell to 2.6% in April 2026, less than a third of the long-run average of 8.4% recorded since 1959. Outside of a brief stretch before the 2008 financial crisis, Americans have rarely saved this little.
The Bureau of Economic Analysis’ April 2026 data tells a simple story: spending rose 0.5%, while disposable personal income declined 0.1%, naturally translating to a decrease in what Americans can save. This trend of decreasing savings is getting harder to ignore.
The picture is bifurcated in a way that aggregate data can obscure. For investors in consumer-facing companies, the composition of spending matters. While headline consumer spending figures may be stable, it’s noteworthy that higher-income households are supported by asset appreciation rather than broad-based consumer health. Importantly, credit card delinquency rates have climbed to their highest levels in over a decade.
A savings rate near historic lows suggests the consumer buffer is thin. For businesses with exposure to mid- and lower-income households, this is a trend worth watching closely.
How are you thinking about consumer health in your portfolio? We’d love to hear your perspective.
Source: V-Square Quantitative Management LLC, U.S. Bureau of Economic Analysis (BEA), Federal Reserve Bank of St. Louis (FRED). Personal Saving Rate (PSAVERT); monthly data, January 1959 through April 2026. Long-run average calculated over the January 1959 to April 2026 sample period.
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