Household income soared 21% in March, largely due to ‘government social benefits’
$1,400 stimulus checks helped propel huge spike.
U.S. household income spiked an astronomical 21% in March, due in large part to the $1,400 coronavirus stimulus checks that went out that month, the government said on Friday.
A press release from the Bureau of Economic Analysis said that, in the U.S., "personal income increased $4.21 trillion (21.1 percent) in March," while disposable personal income increased by an even higher 23.6%.
The spike "largely reflected an increase in government social benefits," the BEA said, noting that the American Rescue Plan Act "established an additional round of direct economic impact payments to households."
The BEA also noted a rise in personal consumption expenditures, one that appears to be tied to the ongoing reopening of major swaths of the U.S. economy, particularly restaurants.
"Within services, the largest contributor to the increase was spending for food services and accommodations," the press release said.