During the last nearly fifty years, consumer spending as a percentage of GDP in the U.S. has more or less consistently increased from the 58.5% reported in Q1 1967 until it peaked at 69.1% in the first quarter of 2011. This share of GDP has dropped slightly to 68.4% during the last four years. As the chart shows, consumer spending during the last 10 years has averaged more than a 68% share of GDP, the highest ever reported based on data starting in 1947. During the same period, net saving has been heading in the opposite direction. In recent years it's been hitting rock bottom, squeezing out a mere 1% savings rate as measured against GDP. To put this in perspective, this ratio was ten times higher during the 1960s and four times higher just ten years ago compared to today. Read more