The savings ability of American households is facing unprecedented challenges. The latest data shows that the US personal savings rate has fallen to 4.7%, hitting a new low since December last year. Over the past five months, the savings rate has dropped by a full percentage point, second only to the historic low at the end of 2022.

In comparison, the average savings rate for the five years before the pandemic was 6.1%, and even in the past five years, it has remained at around 6.5%. Looking further back, in the 1980s, Americans' savings as a percentage of personal disposable income averaged as high as 9.8%. This data clearly reflects a worsening trend in household financial conditions.

The root cause is obvious: wage growth cannot keep pace, and persistent inflation acts like an invisible knife, cutting away consumers' purchasing power one slice at a time. As a result, budgets are becoming tighter, savings are being forced to shrink, and consumer debt is hitting new highs quarter after quarter. The wealth gap is widening, and the K-shaped economic pattern is becoming more apparent—those with assets benefit from asset appreciation, while those without assets are increasingly pushed out.