Consumer spending rises as savings rate plunges to near-crisis lows amid flat income growth
By
Alex Harring, Deena Zaidi
Crusty in the right places. Worth the chew.
Summary
Consumer spending rose 0.5% in April, but income growth was flat (0%) against a 0.4% forecast. The personal savings rate dropped to 2.6%, one of the lowest levels since the global financial crisis, signaling that Americans are depleting pandemic-era savings and taking on more debt to cope with inflation and higher energy costs.
Key quotes
· 4 pulledConsumer spending rose 0.5% from March to April, according to government figures released Thursday.
Income growth came in flat for April, missing the consensus forecast among economists for a 0.4% increase.
The personal savings rate fell to 2.6% in April, one of the lowest readings since the global financial crisis.
It's far off highs above 31% seen in 2020, signaling that consumers have continued to spend through pandemic stimulus and rainy-day stashes amid inflationary pressures.
You might also wanna read
Summer 2026 Projected as Worst Teen Job Market Since 1948 Due to Inflation and Fuel Costs
The article reports that summer 2026 could be the worst for teenage employment in the U.S. since record-keeping began in 1948, driven by ris
pymnts.com·5h ago
Weak Monsoon and Foreign Selling Pressure Indian Markets as Nifty Posts Monthly Loss
Indian equities entered June on a weak note after a selloff on the last Friday of May, driven by foreign selling ($2.2 billion pulled out du
bloomberg.com·18h ago
Kohl's reports Q1 2026 net loss of $14 million as department store sales decline
Kohl's is struggling with declining sales and customer loyalty amid a broader downturn in department store retail. In Q1 2026, comparable sa
bit.ly·21h ago
U.S. New Car Sales Plummet as Affordability Crisis Pushes Ownership Out of Reach for Average Americans
The article reports that new car sales in the U.S. have dropped significantly from 17 million annually before the pandemic to much lower lev
gizmodo.com·23h ago
Investor-Owned Utilities Made $244 Billion in Excessive Profits Amid U.S. Energy Affordability Crisis
A new analysis reveals that investor-owned utilities in the U.S. pocketed $244 billion in "excessive" profits as Americans face a worsening
forbes.com·1d ago
Exxon Warns Record Low Oil Inventories Will Spike Prices
Exxon Mobil has warned that global oil inventories are approaching record low levels within the next few weeks, which will cause oil prices