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The New Frugal Normal? US Savings Rate Rises As 'Buying Plans' Tumble

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For the 26th straight month, US spending growth has exceeded income growth.

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Both income and spending were in line with expectations but the much-watched PCE Deflator was a little hot (+1.8% vs 1.7% exp) at its highest in 11 months.

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Which meant that Real Personal Spending was unchanged in February, after dropping 0.2% in January!

The biggest two-month drop since the financial crisis!

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However, for the 2nd month in a row, the savings rate upticked (from 3.2% to 3.4%), as perhaps a new frugal normal is dawning in America...

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And as we noted previously, the previously systemic slump in savings (as desperate Americans try to maintain their standards of living) has been met with near-record optimism...

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Something that never ended well in the past.  And judging by the "buying plans" of Americans (from the recent Conference Board survey), things may have hit the tipping point...

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