US personal savings rate drops to 2.6% in April
The US personal savings rate fell to 2.6% in April, the lowest level since June 2022.
This decline is attributed to Americans spending beyond their incomes to maintain living standards.
Core retail consumer spending rose 5.7% year-over-year, while personal income increased just 2.5%, a difference of 1.7 percentage points.
The decrease in savings rate may impact consumer strength, a key driver of US economic activity, and potentially affect the economy’s reliance on AI and other technologies.