Morning Market Tidbits

The report argues that the current low US saving rate of 2.6% is driven by high household wealth from equities and home prices. BofA maintains a 2Q GDP tracking estimate of 2.5%.

Key Takeaways

• 1.The sharp decline in the U.S. household saving rate is partially attributed to the 'wealth effect' where rising equity and home prices reduce the perceived need for monthly savings.
• 2.U.S. 2Q GDP tracking has been adjusted down slightly to 2.5% q/q saar following lower than expected consumer spending in Q1.

Table of Contents

• Key takeaways
• What Matters Today
• Households save less when wealth is rising
• US GDP Tracking
• Today's economic calendar
• Disclosures

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