In this week’s “Three on Thursday,” we delve into some of the underlying dynamics in the Personal Income and Consumption report. We believe much of the robust consumer spending of recent years traces back to the unprecedented government stimulus provided to households during the COVID-19 shutdowns. These infusions of funds, combined with limited spending opportunities early in the pandemic, led to a significant accumulation of savings well above pre-pandemic trends. But what is the current status of these excess savings? 

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