Soaring U.S. Incomes Help Drive Biggest Spending Gain Since June
Source: Bloomberg/Yahoo Finance
Reade Pickert
Fri, February 26, 2021, 8:57 AM·2 min read
(Bloomberg) -- U.S. personal incomes soared in January as Americans received another round of pandemic-relief checks, helping to re-charge the economy with the strongest spending advance in seven months.
The 10% gain in incomes exceeded forecasts and was the largest in nine months, a Commerce Department report showed Friday. Purchases increased 2.4% from the prior month, following a downwardly revised 0.4% decline in December.
The surge in incomes, and expectations of even more stimulus, is seen providing additional fuel for consumers at a time of pent-up demand in the wake of pandemic-related disruptions to the service economy.
The January increase reflects the $900 billion pandemic aid package passed in December. The bill provided direct checks to millions of Americans and supplemented jobless benefits with an extra $300 a week payment. While many have saved the government support, the robust increase in spending shows others are spending it.
Read more: https://finance.yahoo.com/news/soaring-u-incomes-help-drive-134028553.html
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