The U.S. personal savings rate rose to 6.9% in May this year as American consumers saved more of their income. This is the highest in the past 15 years. In 2006, the savings rate fell below zero.

Chart: Recent Trends in US Personal Savings Rate

As households net worth increases the personal savings rate decreases as shown in the chart below.Since the 90s the U.S. savings rate has been decreasing year after year even after the net wealth declined after the dot com bubble in 2001. Since late 2008, the savings rate has started to climb. Many economists predict it will continue to climb to pre-bubble levels. In the early 80s Americans saved over 12%.

Source: Frugality: Are We Fretting Too Much?, Household Saving and Assets in the United States by Yasser Abdih and Evan Tanner, IMF