Flat Personal Income for April

By SBE Council at 31 May, 2026, 3:12 pm

by Raymond J. Keating –

The latest personal income report from the U.S. Bureau of Economic Analysis was not pretty.

Personal income, without considering inflation, was flat in April compared to March.

And PCE (personal consumption expenditures) inflation ran at a hot 0.4 percent for the month.

In inflation-adjusted terms, real personal consumption expenditures inched forward by 0.1 percent.

Arguably, the most important income measure in this report is real disposable personal income, that is, personal income less personal current taxes adjusted for inflation. This is the money that people have to use for consuming, investing and saving. In April, real disposable income declined by 0.5 percent.

As noted in the following chart, real per capita disposable income actually has declined over the past year, including a three-month negative streak in 2026.

Source: Federal Reserve Bank of St. Louis, FRED

A key part of that story, of course, is the inflation tax.

Indeed, a notable decline in real disposable income, high inflation, and real consumption barely inching ahead combine to make for an ugly April personal income report.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of “The Weekly Economist” book series, and 10 Points from Walt Disney on Entrepreneurship.