US Consumer Spending Rises as Inflation Stays Elevated and Savings Fall in April

Consumer spending in the United States increased strongly in April 2026, even as personal income remained nearly flat and inflation stayed elevated, according to new data from the U.S. Bureau of Economic Analysis. Personal consumption expenditures rose by $111.1 billion, or 0.5%, driven by a $67.2 billion increase in services spending and a $44.0 billion rise in goods purchases. Meanwhile, disposable personal income fell by $19.9 billion, or 0.1%, while real disposable income dropped 0.5%. The personal saving rate declined to 2.6%, with total personal savings standing at $611.7 billion in April. The report showed that inflation pressures remained firm during the month. The PCE price index, the Federal Reserve’s preferred inflation measure, increased 0.4% from March and rose 3.8% compared with a year earlier. Core inflation, which excludes food and energy, climbed 0.2% monthly and 3.3% annually. Personal income was held back mainly by a drop in farm proprietors’ income following the end of payments under the Farmer Bridge Assistance Program, although higher private wages and salaries partly offset the decline.