Americans Sitting on $1.2 Trillion More Savings Than Thought, Potential Boon for Inflation-Challenged Economy

Americans' excess household savings are much higher than previously thought, estimated at $1.2 trillion more than before the pandemic.

This could be good news for an economy still trying to bring inflation down.

Revised government data shows household savings prior to pandemic were lower than thought, making excess savings now seem higher.

Economists think excess savings may last until sometime next year, supporting spending longer.

Though savings rates fell, spending is still up, with Americans spending 5.8% more in August than a year prior.