FAST FIVE: 9-12 More Months: How Long US Consumers Have Before The Bottom Falls Out
9-12 More Months: How Long US Consumers Have Before The Bottom Falls Out During the Covid-19 pandemic, consumers socked away an unprecedented amount of cash thanks to government stimulus and a locked down economy.
Around nine to twelve months, according to the Wall Street Journal.
What's more, consumers have already been loading up credit cards to supplement their incomes.
A brief history of recent savings trends via the Journal; In 2019, before the pandemic hit, households saved 8.8% of their disposable income.
That saving rate jumped to 16.8% in 2020, the highest annual saving rate on record, as government stimulus and unemployment benefits left many consumers flush with cash but with few opportunities to spend during lockdowns.