Clouds. 74.9   F New York
AI-Powered News Summarizer
Top Stories

Americans are on a spending spree, but the sugar rush may be wearing off

July 31, 2020. Summarized by summa-bot.

A shopper wearing a facemask pushes her cart while people wait in line to enter The Home Depot in Marina Del Rey, California on May 22, 2020, amid the novel coronavirus pandemic. (Photo by Chris DELMAS / AFP) (Photo by CHRIS DELMAS/AFP via Getty Images)

Americans have used their stimulus checks to buy lots of stuff. But the sugar rush could fade if Congress doesn't come up with a way to get even more money into the pockets of consumers.

New York (CNN Business)Americans have used their stimulus checks to buy lots of stuff.

But the sugar rush could fade if Congress doesn't come up with a way to get even more money into the pockets of consumers.

The government's Bureau of Economic Analysis reported Friday that personal spending rose 5. 6% in June.

That spending slump is a distant memory though, thanks in large part to money that consumers received as part of the CARES Act. However, the $1,200 that many consumers have gotten may already have been spent.

Americans socked a chunk of their stimulus money into their bank accounts, but the savings rate in June fell to 19% from a peak of 33. 5% in April.

Experts are worried that it may be tough for consumers to keep shopping until they drop without an extension of various stimulus benefits.

To that end, the University of Michigan reported a drop in its widely watched consumer sentiment index Friday morning.

"The federal relief programs have prevented more substantial declines in the finances of consumers, partly shielding them from the unprecedented surge in job losses, reduced work hours, and salary cuts," said University of Michigan economist Richard Curtin in the report.

We could start to see meaningful changes in consumer behavior absent further stimulus," Majewski added.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.

Suggestions