U.S. Personal Income Up 10% in January, Spending Up 2.4% -- Update
27 February 2021 - 1:15AM
Dow Jones News
By Josh Mitchell
U.S. household income jumped 10% in January as the government
delivered stimulus payments to households and consumer spending
rose 2.4%, priming the economy for a burst in growth this year.
The increase in income was the second largest on record,
eclipsed only by last April's increase when the federal government
sent an initial round of pandemic-relief payments, the Commerce
Department said Friday. January's rise in consumer spending was the
first since October.
Under a $900 billion stimulus program, signed by former
President Donald Trump in late December, the federal government has
been sending one-time cash payments of $600 to most households. It
also has been paying jobless workers $300 a week on top of their
normal unemployment benefits. Meanwhile, job growth resumed in
January after a drop in December. And higher-income households,
unable to travel or dine out, have built up a high level of
savings.
Write to Josh Mitchell at joshua.mitchell@wsj.com
(END) Dow Jones Newswires
February 26, 2021 09:00 ET (14:00 GMT)
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