Personal income surges by most on record as Biden delivers stimulus checks

Personal income rose 21.1% month over month in March

Consumers’ spending and personal income soared in March as more vaccinations fueled a further reopening of the U.S. economy and as the government sent out stimulus checks to millions of Americans. 

Consumer spending, which accounts for two-thirds of U.S. economic activity, rose 4.2% last month, rebounding from last month's 1% decline. Analysts surveyed by Refinitiv were expecting a 4.1% increase. 

Personal income, meanwhile, surged a record 21.1% versus the prior month, recovering from last month's 7% drop and topping the 20.3% increase that was anticipated. The spike came as the government sent out $1,400 checks to most Americans as part of the American Rescue Plan. 

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Elsewhere, personal consumption expenditures climbed 2.3% year over year in March. The core reading, which excludes food and energy, grew 1.8% from a year ago.