Mar. 15--At a time when businesses want consumers to spend, many are opting instead to replenish savings accounts.

The Bureau of Economic Analysis earlier this month reported the personal savings rate hit 5 percent in January. Between Jan. 1, 2005, and April 1, 2008, the savings rate never topped 1.3 percent. The rate is determined by how much disposable income is saved after other expenses are paid.

As the recession worsened, the trend changed. By May, the savings rate jumped to 4.8 percent, but began falling again between June and September. However since September, the rate has been climbing from 1.4 percent to its present level.

Americans put away $545.5 billion in savings in January, up from $416.8 billion in December, the Bureau of Economic Analysis reported.

"It's a natural when the economy is in a downturn," said Brian Jacobsen, a senior analyst with Wells Fargo Advantage Funds in Menomonee Falls. "People try to cut back on consumption and save a lot more."

Not just on frills such as a gourmet cup of coffee.

"People are cutting back on large ticket items like automobiles, washers and dryers and other durable goods," he said. "People are just being cautious with their money now because they are concerned about job security."

Ken Eiden, chief executive officer at Appleton-based Prospera Credit Union, agreed.

"We've been seeing all these years of negative savings," he said. "Because of what is happening now, people are seeing the value in having savings."

The state Department of Workforce Development reported that the state's jobless rate in January increased 55 percent over the past year. The latest number of 7.6 percent is up from the January 2008 figure of 4.9 percent.

The state's total labor force was 3,099,500 in January, with 215,400 people out of work. That compares with a total labor force of 3,083,200 in January 2008 with 136,600 out of work.

The employment numbers worsen nationally, with the overall U.S. jobless rate at 8.1 percent, its highest mark in 25 years.

While some analysts contend a high savings rate is bad for the economy, Jacobsen has a different view.

"It isn't such a bad thing," he said. "If Americans are putting more money in the bank, it then gives banks more capital to lend, which could be a positive for the economy."

What is bad is Americans hording cash and stashing it where it cannot be reinvested, Jacobsen said.

"When people are doing things like putting money in coffee cans or something extreme like that that isn't good for banks," he said.