Americans are "burning through savings at an alarming rate"

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In April, the personal savings rate in the US ticked down to a 14-year low of 4.4%, according to the latest figures from the Commerce Department.

That's half the rate it was in December, and roughly a third of where it was the year before.Many households are already in negative savings territory, meaning they are increasingly tapping into their savings to cover purchases each month.

"This isn't a normal recovery, and that fiscal stimulation is still in the pocketbooks of consumers," JPMorgan CEO Jamie Dimon told investors at a conference this week. "They're spending it, they're spending at very strong levels."

But, he added, the drawdown could mean that consumers have only about six to nine months of spending power left.

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The combination of high spending and high inflation means Americans are burning through savings at a rate that could have them running out by the end of this year, he said. More than eight in ten US shoppers are planning to buy fewer things in the next three to six months, according to a recent survey from the market research firm NPD Group. The survey also found that consumers bought 6% fewer items in the first three months of 2022 than they did during the same period in 2021

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