Summary: Latest GDP revisions also boost household savings
What the chart shows: The chart shows US household savings as % of disposable income
Why is the chart important: The US Bureau of Economic Analysis has just published its most recent major GDP revision. These take place every five years, but the 2013 was more through-going than most, in two ways. First, investment in intellectual property (films, books etc) is now counted as capital expenditure. Second, pension savings is now included in the household savings rate. The revision does not change the past, but it provides a better picture of it. In the case of household savings, it helps explain how US households have managed to deleverage in the aftermath of the Great Recession. However, the recent trend is still for the savings rate to fall. Short-term, that is good news for the economy. Somewhat further out, it is a concern.