Americans' incomes zoomed higher at record speed in March
April 30, 2021. Summarized by summa-bot.
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Shoppers carry Neiman Marcus Group Inc. branded bags on Market Street in San Francisco, California, U.S., on Wednesday, April 14, 2021. U.S. retail sales probably swelled in March thanks to faster hiring, the distribution of federal stimulus checks, a steady pace of Covid-19 vaccinations and fewer restrictions on stores across the country. Photographer: David Paul Morris/Bloomberg via Getty Images
The economic recovery is underway and while there's still plenty of work to be done, new data on Americans' incomes shows the government's spending efforts are bearing fruit.
New York (CNN Business)The economic recovery is underway and while there's still plenty of work to be done, new data on Americans' incomes shows the government's spending efforts are bearing fruit.
American wallets got a big cash injection in March as personal incomes rose 21. 1%, or $4. 2 trillion, marking the largest monthly increase on record, the Bureau of Economic Analysis reported Friday.
That's a good sign, because even though millions of American workers remain unemployed — the nation is still down more than 8 million jobs as of last month — consumer spending is vital to the economy and it's hard to spend without a steady income.
Consumer spending rose 4. 2% in March, also reversing a decline in February.
All the increased spending is causing prices to rise.
Consumer prices climbed 0. 5% in March, according to Friday's report, but year-over-year the PCE price index is now up 2. 3%.