June 27, 2025
Article from Alternet by Adam Lynch
Article Synopsis
A recent economic slowdown in the U.S. is leading to a notable decline in personal income and consumer spending, according to RSM US LLP Chief Economist Joseph Brusuelas. In May, personal income fell by $109.6 billion (0.4%), while spending dropped $29.3 billion (0.1%), and disposable income declined by $125 billion (0.6%), per data from the U.S. Bureau of Economic Analysis.
The biggest spending cuts were seen in motor vehicles, food services, rent, financial services, and groceries. Experts warn this is a poor time to reduce programs like SNAP and Medicaid, as the personal savings rate also fell to 4.5% in May, down from 4.9% in April.
