Consumers are still spending — but that doesn't mean they're financially healthy

Companies have been touting the strength of the American consumer, but that doesn’t necessarily mean people are in good financial health.

Company earnings reports have been trumpeting the strength of the American consumer’s wallet — but all that spending is coming at a cost.

The reports of shrinking savings come as economists and corporate leaders have pointed to strong consumer spending as the engine fueling America’s surprisingly resilient economy in recent months. “Inflation has stretched household budgets,” McBride said. “Those that were previously saving may be saving less or not saving at all. Those that weren’t saving have been leaning on credit to fill the gap.”

But for many consumers, the extra cash is long gone. In August, the personal savings rate dropped to 3.9%, according to the U.S. Bureau of Economic Analysis.Americans are more stressed about money than about their health And many consumers are worried about the state of their finances. It’d take a healthy hunk of cash to ease those worries. Almost half of respondents to the FINRA survey that reported some concerns about their finances said it would take at least double their current income to give them peace of mind.

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