I have been getting concerned by the drop in the savings rate but this commentary from Wells Fargo suggests it may not be necessary to be too worried.
"…..current consumer conditions differ more than they relate to the pre-Great Recession era, even if the saving rate is close to the levels it reached before the Great Recession. Thus, we feel confident on the outlook of the consumer this year and into next. Furthermore, we are expecting an increase in real DPI in 2018 based on continued tightening in the labor market coupled with only small increases in inflation. Similarly, we expect borrowing to continue at a healthy pace. These expected conditions should continue to foster strong consumer demand into 2019.....as of today, there are few, if any, similarities with what was happening with the U.S. consumer before the Great Recession."
http://image.mail1.wf.com/lib/fe8d13727664027a7c/m/2/us-consumer-running-on-fumes-20180208.pdf?utm_source=SFMC&utm_medium=email&utm_campaign=&utm_content=&utm_term=7230679&sid=26739
