Good news and Bad News : Savings Rates are Up

This AP article Wall Street Slips on energy, saving rate says that stock market was down partially cause worries that the increase in consumer savings rates may negatively impact the economic recovery. The article says: " Savings jumped to a record annual rate of $768.8 billion, the highest level since record keeping began in 1959."

So its both good news and bad news. Its great news that we're saving more as a nation. But the increased savings means we're spending less and that is bad news as far as the impact on the economic recovery.

The Bureau of Economic Analysis (BEA) tracks savings rates and they had a news release on it today which said that "Personal saving as a percentage of disposable personal income was 6.9 percent in May" You can also see a chart of savings as % of disposable income by quarter on their site.