US personal savings rate drops to 2.7% in June, lowest in two years

The US personal savings rate slipped 0.1 percentage point to 2.7% in June, according to the latest data. This extends a five-month losing streak, with the rate down a cumulative 1.7 percentage points over that period.

It’s the third-lowest monthly reading since April 2008, during the global financial crisis. For context, the rate averaged around 5.5% between 2014 and 2019, underscoring how much households’ savings buffers have eroded.

The only comparable stretch in modern history was 2005–2007, when the savings rate fluctuated between 1.4% and 3.3%. The current level suggests consumers are increasingly unable to set aside income, raising concerns about financial resilience.