BUSINESSAXIOS
Americans are spending faster than their income is growing
Americans are spending faster than their income is growing, with the personal saving rate falling to 2.6% in April, its lowest since mid-2022. Rising energy costs from the Iran war and stagnant incomes are driving households to draw down savings, raising concerns about a potential pullback in consumer spending and economic growth.
Mentioned
Related Signal
Adjacent reporting
- US economic growth rebounds 2% as consumer spending slows amid Iran war
- UK households cut back spending at fastest rate in 18 months, Barclays says
- Consumer spending looks strong, but higher inflation is a big reason why
- UK households bracing for new cost of living crisis, report finds
- US Consumer Spending Increases as Inflation Accelerates
- State spending has skyrocketed — but where has the money gone?