American households pay nearly $450 more on average for energy amid Iran War, data shows
American households are experiencing a significant increase in energy costs, averaging nearly $450 more due to the ongoing Iran War. Consumer spending rose by 0.5% from March to April, but income growth remained flat, missing economists' expectations. The personal savings rate has dropped to 2.6%, indicating that consumers are relying on savings and credit to maintain their spending amid inflation.
- ▪Consumer spending increased by 0.5% from March to April.
- ▪Income growth was flat for April, missing the forecast of a 0.4% increase.
- ▪The personal savings rate fell to 2.6%, one of the lowest since the global financial crisis.
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Consumer spending rose 0.5% from March to April, according to government figures released Thursday. But other data points show that isn't necessarily coming from discretionary funds.Income growth came in flat for April, missing the consensus forecast among economists for a 0.4% increase.The personal savings rate fell to 2.6% in April, one of the lowest readings since the global financial crisis. It's far off highs seen in 2020 above 31%, signaling that consumers have continued to spend through pandemic stimulus and rainy-day stashes amid inflationary pressures.American credit card debt came in at $1.25 trillion in the first quarter, up close to 6% from a year ago, the New York Federal Reserve said this month.
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