Chart of the Week – Savings on the rise, pent-up demand awaits
Accumulated savings for the period of February 2020 through November 2020 was up 153% from the same period in 2019.
As a result of spring stimulus checks, federal unemployment assistance and fewer opportunities to spend, consumers are flush with cash. In addition, we believe additional stimulus checks of $1,400 are coming in March, on top of the $600 issued in December. As herd immunity builds this spring, and physical distancing restrictions are removed, we believe consumers will get out and spend. We think most of the year-over-year growth in savings is pent-up demand.
Accumulated Savings Since February 2020
Source: BEA, Bloomberg, Ivy Investments. Dates shown are February 2020 through November 2020. This chart is being provided as a general source of information for education purposes only, and is not intended as a recommendation to purchase, sell or hold any specific security or to engage in any investment strategy.