Definition
The share of after-tax income that households save instead of spend.
The story
If you take home $1,000 and spend $950, your saving rate is 5%. When the national rate drops, it can mean people are dipping into savings to keep spending, which can't go on forever.
Why markets watch it
It hints at how long consumer spending can hold up.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms