U.S. households are burning through their financial cushion at an accelerating pace as prices, especially energy costs tied to the Iran war, remain high, new figures show.
Consumer spending rose in April even as disposable personal income fell, suggesting that many Americans are no longer spending from strength but from savings. The personal saving rate fell to 2.6% in April, down from 3.2% in March and 4.3% in January, according to the Commerce Department. That is the lowest level since mid-2022 and one of the weakest readings in 65 years of data.
