Long Term Perspective
Debt burdens are at historically high levels. The personal savings rate plunged in late 2001 in response to increase auto purchases; otherwise, the general trend in savings is positive. In periods of economic uncertainty, or during recessions, consumers tend to add to savings and diminish debt burdens.

Short Term Perspective
The debt-to-income ratio has remained relatively stable these past nine months, although there is a slight downward trend in the series. The personal savings rate edged down in October as motor vehicle sales rose. On the whole, savings are in good shape although low by historical standards. The moderation in consumer indebtedness bodes well for the upcoming recovery since it means households are not necessarily overburdened.

Real GDP vs. Final Sales   •   Real Consumer Spending vs. Real Income   •   Debt Burden vs. Savings Rate

Business Fixed Investment vs. Net Cash Flow   •   New Orders   •   Housing Starts vs. Mortgage Rates

Merchandise Exports vs. Trade Weighted Dollar   •   Merchandise Imports vs. Trade Weighted Dollar