U.S. Household Spending Fell 1% in February

[mahatmakanejeeves]

Source: The Wall Street Journal.

ECONOMY U.S. ECONOMY

U.S. Household Spending Fell 1% in February

Household income fell 7.1%; more stimulus checks, rising vaccinations are expected to unleash a burst in shopping and travel

By Josh Mitchell
Updated March 26, 2021 8:48 am ET

U.S. households cut spending by 1% last month, as cold weather struck much of the country, but are primed to pick up shopping again with the pandemic easing and a new round of stimulus money landing in bank accounts.

The drop followed a burst of stimulus-induced spending in January, when spending grew 3.4%, stronger than previously estimated. Household income fell by 7.1% last month, the Commerce Department said, after government stimulus money caused income to rise 10.1% in January.

Consumers drastically cut spending on goods last month, while they boosted spending on services.

Last month's overall decline in income and spending are likely to be temporary.

Cold weather--including storms that shut down sections of Texas and other states--prevented many people from dining out, ordering food online or going to stores last month. Household incomes also fell from abnormally high levels in January, when the government distributed stimulus checks of up to $600 a person in most households under a $900 billion economic-relief plan approved by Congress late last year. That law also provided enhanced employment benefits of $300 a week for jobless workers.

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Read more: https://www.wsj.com/articles/consumer-spending-personal-income-february-2021-11616710309

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This is supposed to be at the BEA (Bureau of Economic Analysis). They haven't linked to it yet. That won't take long.

https://www.bea.gov/data/consumer-spending/main

Hat tip, the CBS radio news at 10:00 a.m.

https://twitter.com/JMitchellWSJ

[mahatmakanejeeves]

1. The BEA updated its page.

EMBARGOED FOR RELEASE: 8:30 A.M. EDT, Friday, March 26, 2021

BEA 21-12

Personal Income and Outlays, February 2021

Personal income income decreased $1,516.6 billion (7.1 percent) in February according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) decreased $1,532.3 billion (8.0 percent) and personal consumption expenditures (PCE) decreased $149.0 billion (1.0 percent).

Real DPI decreased 8.2 percent in February and Real PCE decreased 1.2 percent; goods decreased 3.3 percent and services decreased 0.1 percent (tables 5 and 7). The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent (table 9).

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