Personal consumption increased in 1993 while income fell slightly, leading to a decrease in savings. Many experts predicted a slowdown in economic growth due to this trend. However, the economy remained strong in 1994, challenging this prediction. The article explores the idea that households save less when they expect their future income to rise, as suggested by the permanent income hypothesis. This means that a decrease in savings, like in 1993, could actually indicate faster income growth in the future.