U.S. real earnings declined again in April 2026, but at a slower pace than in the previous month, suggesting a modest easing in the pressure on household purchasing power. According to the latest data updated on 12 May 2026, real earnings fell by 0.2% month-over-month in April, following a sharper 0.9% drop in March.
The figures, measured on a month-over-month basis, compare the change in April to March, while the previous reading compared March to February. Although real earnings remain in negative territory, the reduced rate of decline could indicate that the squeeze from inflation-adjusted income is beginning to lessen, an important signal for consumer spending and broader economic momentum in the United States.