https://www.businessinsider.com/recession-likely-economic-downturn-inflation-household-finances-worsening-spending-slowdown-2022-10
Household finances are in a worrying decline. Savings boomed through the early days of the pandemic as unprecedented stimulus and weak in-person spending left Americans more cash to stash away. That trend peaked in the middle of 2021 as the economy reopened and spending rebounded. Surging inflation led many to tap their savings to afford everyday staples, and as prices continue to soar, the cash buffer has continued to shrink.
The situation is even worse than previously thought. Data from August showed US households having spent about $270 billion of a $2.4 trillion savings cushion, according to the Bureau of Economic Analysis. That equates to about 11% of that extra accumulated cash having been spent since balances started to fall last year.
But recent revisions paint a bleaker picture. According to the newly revised stats that came out on September 30, the savings buffer peaked at only $2.1 trillion in August 2021, and roughly $630 billion — or 31% — of that cushion has been spent.