Strong gains in consumer spending and incomes in March

U.S. consumer spending rose at the fastest pace in nine months while incomes soared by a record amount in March, reflecting billions of dollars in government support payments aimed at putting the country firmly on the road to recovery

WASHINGTON -- U.S. consumer spending rose at the fastest pace in nine months while incomes soared by a record amount in March, reflecting billions of dollars in government support payments aimed at putting the country firmly on the road to recovery. Consumer spending rose 4.2% last month, the Commerce Department said Friday, the best showing since a 6.5% spending increase in June. Spending had fallen 1% in February as frigid winter weather disrupted sales. Incomes surged by a record-breaking 21.1% in March after having fallen 7% in February. The big gain reflected delivery of billions of dollars in relief payments with individual payments of up to $1,400 from the $1.9 trillion support package President Joe Biden pushed through Congress last month. The strong gains provided more evidence that the economy is poised for a robust recovery following last year's pandemic-triggered recession. Economists are counting on strong consumer spending, which accounts for two-thirds of economic activity, to power a recovery this year, helped by trillions of dollars in government support, increased vaccinations which are encouraging more people to leave their homes and a surge in pent-up consumer demand.