U.S. Consumer Spending and Personal Income Rise in January

Consumer spending in the United States increased sharply last month, amid increased government stimulus spending and a decrease in the number of new Coronavirus cases.

U.S. consumer spending rose by 2.4% in January, following a 0.4% decline in December, data by the U.S. Department of Commerce showed on Friday.

The reading signals an improvement that could speed up economic recovery in the U.S. during the first quarter of the year, as consumer spending accounts for more than two-thirds of economic activity in the U.S.

In addition, data showed that personal income leveled up by 10% in January 2021.