DORAL, FL – U.S. consumer spending rose 4.2% last month, the fastest pace in nine months as per the Commerce Department findings revealed on Friday.
This has been the best result since a 6.5% spending increase in June following a decrease in February by 1% due to a disruption in sales during winter. U.S. consumer spending it’s key for the economy because it represents two-thirds of the economic activity.
In addition, incomes surged by a record-breaking 21.1% in March after having fallen 7% in February, which according to experts comes as a result of the stimulus checks delivered to Americans as part of the $1.9 trillion COVID-19 relief plan.
Also, less Americans are seeking unemployment aid. Last week, the number of people doing so reached its lowest point since the pandemic hit the U.S., reported the AP.
And the figures are positively impacting the housing market as well. The National Association of Realtors revealed Thursday that more Americans signed contracts to buy homes in March.
All these gains arrive amid an economy that seems to be fast-recovering from the pandemic as it grew last quarter (January-March) at a 6.4% annual rate and it’s expected to improve even more during the current quarter (April-June), said the government Thursday.
The positive scenario has been fueled by not only the trillions of dollars in government support, but also by widespread vaccinations, declining viral cases and the reopening of more businesses, which places confidence in consumers to leave their homes and spend.
For 2021 as a whole, it is expected that the economy grows around 7%, which according to the AP would “mark the fastest calendar-year growth since 1984.”