Energy-price surge stretches Americans' budgets as spending outpaces income growth

Americans spent 0.5% in April while disposable income fell 0.1%, driving the saving rate down to 2.6% — the lowest since mid-2022 — as gasoline and energy costs weigh on budgets. Real per-capita disposable income declined 1.4% year over year, signaling that while consumption remains resilient, the consumer is increasingly drawing down savings and facing an uneven, potentially fragile path for growth.