Americans set aside less of their income in May as stubborn price pressures and higher borrowing costs continued to squeeze household budgets. The personal savings rate fell to 4.3%, suggesting many families had to lean on cash reserves to cover everyday expenses.

The decline points to a consumer sector still under strain despite a resilient labor market. With credit more expensive and living costs elevated, households appear to be using emergency funds and trimming the amount they can put away each month.

The figures highlight how inflation can linger in the background even after it cools from peak levels. For lower- and middle-income families in particular, the combination of higher rents, food costs, and debt payments can leave little room to save.

Economists will watch whether weaker savings translate into softer spending in the months ahead. For now, the data suggests American households remain financially stretched, with many prioritizing immediate bills over rebuilding reserves.