US consumer spending and incomes fall, but rebound is expected

Both consumer spending and personal incomes are expected to rebound in March as Americans receive stimulus cheques.

Consumers’ spending and personal incomes both fell sharply in February as severe winter storms disrupted shopping in many parts of the United States and as the government wrapped up distribution of $600 relief payments. However, both are expected to rebound strongly this month as more people are vaccinated against the coronavirus – and as they are flush with a second round of pandemic aid, this time in larger, $1,400 individual payments. Consumer spending fell one percent last month, the Commerce Department reported Friday, the biggest drop since last April when spending tumbled 12.4 percent as the country was broadsided by the global coronavirus pandemic.