Household savings depleted as labor market weakens.

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What happened: Household savings have reached critically low levels, surpassing even pre-pandemic levels, coinciding with a weakening labor market.

Shocking or important: The depletion of household savings is occurring at a time when the labor market is showing signs of deterioration, raising concerns about economic stability.

Examples: Current levels of depleted savings are worse than those seen in 2019, highlighting the severity of the situation. Additionally, median home prices are contracting at rates not seen since 1964, adding to economic uncertainty.

What if it’s getting worse: The simultaneous decline in savings and weakening labor market could lead to increased financial strain on households, potentially resulting in reduced consumer spending and further economic downturn.

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