Household income rose at a record pace of 21.1% in March as federal stimulus checks helped fuel an economic revival.
The 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, the steepest month-over-month increase since last summer.
Consumers shelled out more on goods, particularly big-ticket items such as autos and furniture, compared with services in March. Economists expect that to change in the coming months due to widespread vaccinations and broader reopening of the economy.
Author(s): Sarah Chaney Cambon
Publication Date: 30 April 2021
Publication Site: Wall Street Journal