Americans are so nervous about the state of the economy that they are stashing cash in the bank at a rate not seen since the first year of Ronald Reagan’s presidency.
The United States government’s Bureau of Economic Analysis reported Thursday morning that the savings rate surged to 13.1% in March — up from 8% in February.
That’s the highest savings rate since November 1981. Americans had $2.17 trillion in savings last month.
…Still, consumers may be saving more because they are spending less — a lot less, in fact. The BEA also said Thursday that consumption expenditures fell 7.5% last month, led by a nearly $935 billion drop in spending on goods and services. Much of that is probably due to the widespread closure of businesses.
It’s funny, sorta, that on the other hand of “not spending,” the sales guy at Granite State Glass is apologizing that he hasn’t gotten my quote for replacing my front door to me yet. I’ve already had them replace four windows, so I’m an existing customer and was ready to replace the door (with an armored up one) last fall but the lead-time ran into the really colder weather so we put it off. Called him up, he came over, redid the measurements and I added a slider had to be replaced, too, as the outer pane of the double glass slide just shattered one morning.
Since he couldn’t find the door quote so I re-sent what I had for updating. That was two weeks ago; I emailed him as a reminder and said he’s hoping to get the updated one just for the door by the end of the weekend. Three weeks to review an existing quote, update, and send back.
He is that flat out with new and add-on business. So a whole lot of somebodies are spending a great deal of money. Probably because they’ve been stuck in their house for so long for so many days in a row they’ve gone “yuck, THAT, THAT, and THAT have got to go and we need to update the place.
(H/T: CNN Business)