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Personal saving as a percentage of disposable personal income

Nick Name
personal savings rate
Parent term
Economic Indicator
The Personal Savings Rate measures the percentage of disposable personal income that people are saving

  • Calculated as the ratio of personal saving to DPI.
  • Personal saving is equal to personal income less personal outlays and personal taxes
  • Generally  viewed as the portion of personal income that is used either to provide funds to capital markets or to invest in real assets such as residences
  • It is thought that when the PSR goes up, there is pent up consumer demand (and vice versa)

Personal Savings Rate Source:

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