U.S. consumer spending, income plunge ahead of stimulus package
The United States had seen its consumer spending plunged to its sharpest in 10 months. The decline, which was seen in February, followed after large portions of the country’s economy suffered from inactivity and as a second round of stimulus checks for middle- and lower-income households faded.
Consumer spending, which covers more than two-thirds of U.S. economic activity, recorded a 1.0% contraction last month, the Commerce Department said on Friday. The figure was lower than the 0.7% drop expected in a Reuters survey.
The drop, which came after January’s 4.4% jump, was viewed fleeting as the country heads toward its most upbeat performance in 37 years. This was owed mainly to U.S. President Joe Biden’s $1.9 trillion stimulus package and nationwide coronavirus vaccine rollouts.