# U.S. Savings Rate Fell to 3.8% as GDP Grew at a 3.4% Pace

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/43721
Published: 2026-10-29T17:28:42.000Z
Updated: 2026-10-29T17:28:42.000Z
Section: Investing

> Artificial intelligence investment and consumer spending supported output, but September prices rose 3.6% from a year earlier, above the Fed’s 2% target.

U.S. households saved a smaller share of their income in September as prices rose, even while the economy accelerated in the third quarter, highlighting uneven gains behind the stronger growth figure.

The Commerce Department reported Thursday that gross domestic product (GDP) rose at a 3.4% annualized rate in July through September, compared with a 2.2% pace in April through June. The annualized figure expresses the quarter’s growth at a yearly rate. GDP measures the value of goods and services produced across the U.S. economy, so it can grow even as individual households face tighter budgets.

Investment by artificial intelligence companies in data centers and technology development supported output, along with consumer spending. Spending continued to grow steadily, but its strength was uneven: higher-income households drove some of the gains, while lower-income families struggled more with prices. Wage growth also lagged inflation, adding pressure to household budgets.

The personal saving rate was 3.8% in September, down from 4.1% in August. Prices rose 3.6% from a year earlier, above the Fed’s 2% target. The household figures add another dimension to the third-quarter GDP and inflation readings.

Siri Steven, a resale-store manager in Decorah, Iowa, said she and her husband have postponed repairs to their more than 130-year-old house. “We barely go out to eat now,” she said. Steven said they have been living paycheck to paycheck and have not been able to save.

The figures came five days before the Nov. 3 midterm elections, as inflation raised the cost of everyday necessities and the conflict with Iran drove up gasoline costs. Mark Zandi, chief economist at Moody’s Analytics, called growth “very, very fragile.” He said businesses and consumers had to navigate Trump administration policies, including tariffs and the U.S. war against Iran.

The Fed held interest rates steady Wednesday. The latest inflation reading added pressure for a rate increase at its next meeting in December.