US Consumers Keep Spending Faster Than Incomes Are Growing

US income growth is running further behind consumer spending, prompting Americans to dip into their savings and generating concerns about the sustainability of robust household demand — the economy’s main engine.

Inflation-adjusted consumer spending increased 2.6% in November from a year earlier, according to Bureau of Economic Analysis data out Thursday. By comparison, disposable personal incomes climbed 1% — the smallest annual advance since 2022. The saving rate fell to a three-year low.