U.S. Household Income Surged by Record 21.1% in March

[mahatmakanejeeves]

Source: The Wall Street Journal.

ECONOMY U.S. ECONOMY

U.S. Household Income Surged by Record 21.1% in March

Higher income, spending and saving are expected to help power a fast economic recovery

By Sarah Chaney Cambon
Updated April 30, 2021 10:51 am ET

Household income rose at a record pace of 21.1% in March as federal-stimulus checks helped fuel an economic revival that is poised to endure with an easing pandemic.

The 21.1% March surge in income was the largest monthly increase for government records tracing back to 1959, largely reflecting $1,400 stimulus checks included in President Biden's fiscal relief package signed into law in March. The stimulus payments accounted for $3.948 trillion of the overall seasonally adjusted $4.213 trillion rise in March personal income.

Spending was also up sharply, increasing 4.2%, the Commerce Department said on Friday. That was the steepest month-over-month increase since last summer.

Consumers shelled out more money on goods, particularly big-ticket items such as autos and furniture, compared with services in March. But economists expect that to change in the coming months due to widespread vaccinations and the broader reopening of the economy.

"If we have Covid-19 cases under control, that would ideally make way for us to reopen the services sector of the economy," said Pooja Sriram, U.S. economist at Barclays. "That, in fact, is a crucial aspect of ensuring that this recovery continues."

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Read more: https://www.wsj.com/articles/consumer-spending-personal-income-march-2021-11619732790

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Hat tip, Joe.My.God.

Commerce Dept: Household Income Up 21% In March
April 30, 2021

https://www.joemygod.com/2021/04/commerce-dept-household-income-up-21-in-march/

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Stimulus checks accounted for about 94% of the record rise in March household income:

Link to tweet

[mahatmakanejeeves]

1. Personal Income and Outlays, March 2021

Consumer spending on goods in March was above the pre-pandemic level of February 2020. Spending for services remained below the pre-pandemic level. Learn more in today’s blog: http://go.usa.gov/xHEHV

Link to tweet

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, APRIL 30, 2021

BEA 21-19

Personal Income and Outlays, March 2021

Personal income increased $4.21 trillion (21.1 percent) in March according to estimates released today by the Bureau of Economic Analysis (tables 3 and 5). Disposable personal income (DPI) increased $4.18 trillion (23.6 percent) and personal consumption expenditures (PCE) increased $616.0 billion (4.2 percent).

Real DPI increased 23.0 percent in March and Real PCE increased 3.6 percent; goods increased 7.3 percent and services increased 1.7 percent (tables 5 and 7). The PCE price index increased 0.5 percent. Excluding food and energy, the PCE price index increased 0.4 percent (table 9).

{snip}

[FBaggins]

2. Should be ignored

Otherwise... we have to look at "household income collapses" once the boost is past.