US Consumer Spending And Income Recovered in March

Consumer spending in the United States rebounded in March amid a rise in income, as families received additional aid money linked to the Covid-19 pandemic from the government, laying a solid foundation for a further acceleration in consumption in the second quarter.

The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of US economic activity, increased 4.2% last month after falling 1.0% in February.

Personal income jumped 21.1, after dropping 7.0 in February.

Economists polled by Reuters had expected an increase in consumer spending of 4.1% and an increase in income by 20.3%.