Americans' personal savings rate is near an all-time low - an economist explains what it means as a potential recession looms![](https://images.theconversation.com/files/501599/original/file-20221216-16-p6e47a.jpg?ixlib=rb-1.1.0&rect=0%2C889%2C6000%2C3000&q=45&auto=format&w=1356&h=668&fit=crop)
The rate at which Americans are saving money has dipped close to an all-time low, according to the Bureau of Economic Analysis. The personal savings rate was 2.3% as of October, down from 7.3% a year earlier. It’s the lowest since July 2005, when the rate hit a record low of 2.1%.
We asked Arabinda Basistha, an economist at West Virginia University, to explain the personal savings rate, what’s driving it so low and what it means as a potential recession looms in 2023.
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