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Personal Saving Rate
The personal saving rate fell steadily over the past two decades as growing stock market and home equity wealth and plentiful jobs made households feel that they didn’t need to save as much. The easy extension of credit also played a role as did changes in the culture that encouraged consumption over saving. The rate, at 2.8 percent in November 2008, is expected to end 2009 above 5 percent as households cut spending in response to the deepening recession. In the short term, this will not help retailers, shopping center landlords or the economy. However, it will help stabilize the economy in the long term as there will be less reliance on debt to propel growth. |
by Bob Bach, Senior Vice President, Market Analysis
© 2008 Grubb & Ellis Company |
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