economy
5 economic signals suggest U.S. consumers are feeling the strain
Updated on: May 29, 2026 / 5:47 PM EDT / CBS News
TL;DR
- Consumer spending, which drives 70% of the U.S. economy, is showing signs of strain amid high inflation.
- Real after-tax household income has fallen over the past year, a drop not seen since the Great Recession, excluding pandemic-era distortions.
- Credit card delinquencies are at their highest level since 2011, indicating increased difficulty in meeting financial obligations.
- The personal savings rate has fallen to a 22-year low, with tax refunds providing temporary relief that is expected to run out.
- More Americans are borrowing from or making hardship withdrawals from their 401(k)s due to financial difficulties.
- Lower- and middle-income households are reducing gas consumption, and some retailers are observing a decrease in fuel purchases per customer.