Posted BY: Teresa | NwoReport
In recent developments, new reports have shed light on the financial struggles faced by a significant portion of Americans. A study conducted by Lending Club in July 2023 revealed that a staggering 61% of Americans find themselves living paycheck-to-paycheck, highlighting the ongoing impact of inflation on household budgets. This worrisome statistic was underscored by CNBC’s report, drawing attention to the growing financial strain among citizens.
Further insights were provided by the U.S. Bureau of Economic Analysis (BEA), which released its “Personal Income and Outlays” report for the same month. The report revealed a concerning trend in the decline of Americans’ average personal savings rate, dropping from 4.3% in June to a mere 3.5% in July. This decline is particularly noteworthy when compared to historical data, as the current savings rate is only a fraction of the 13.4% level seen when former President Donald Trump concluded his term in office. Moreover, this rate is more than double the 7.2% recorded during the initial month of Trump’s presidency.
When adjusted for inflation, the “real” disposable personal income (DPI) for July experienced a setback. The BEA’s report outlined several key points:
- Total personal income increased by $45.0 billion in July, with a modest monthly growth rate of 0.2%.
- Disposable personal income remained nearly unchanged from the previous month.
- “Real” disposable personal income saw a decrease of 0.2% during the month.
- On the expenditure side, “real” personal consumption expenditures saw a 0.6% increase in July, driven by rises of 0.9% in spending on goods and 0.4% in spending on services.
- The Personal Consumption Price Index rose by 0.2% compared to the prior month.
In summary, the recent data paints a concerning picture of Americans’ financial well-being. With the majority living paycheck-to-paycheck and the personal savings rate declining, there’s a clear indication of the challenges posed by inflation and economic fluctuations. These figures emphasize the need for economic measures that can alleviate the burden on households and promote sustainable financial stability.