Saturday, May 31, 2025

Latest

US Consumer Spending Increases by a Record 8.2% Despite Dwindling Incomes

As many states across the US began lifting non-essential business restrictions and stay-at-home orders in May, Americans were eager to leave their house and spend what income they had left on the consumption of goods and services.

According to a recent report released by the Commerce Department, the month of May saw consumer spending increase by 8.2% – the most on records that date back to 1959. The surge in consumption comes after a 6.6% decline in March, preceded by a 12.6 drop in April, when the recession was set off. As states began reopening their economies, consumers have been mostly indulging on recreational goods and dining out.

On the contrary however, the report also found that simultaneously to the increase in spending, personal incomes have fallen by 4.2% in May. Comparatively, personal incomes surged by 10.5% in April, when many of the government-funded stimulus checks were distributed.

The polarizing results suggest that Americans will soon have their personal incomes dwindle away even more, given that stimulus funding is slated to soon run out. At the end of July, the $600 weekly supplemental unemployment benefits will reach expiry, ultimately leaving millions of Americans in a state of financial difficulty.

Information for this briefing was found via The Washington Post and the Department of Commerce. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Canadian Households Focusing on Retaining Savings and Paying Off Debt, Not Consumption

It appears that an increasing number of Canadians have been focusing on either paying off...

Saturday, January 16, 2021, 03:44:00 PM

US Consumer Spending Expectations Soar, Despite Pessimistic Earnings, Income

Despite the less-than-dismal state of consumer finances that is expected to envelope much of the...

Saturday, December 19, 2020, 11:41:00 AM

US Economic Recovery Hits Standstill After Consumer Spending Declines Once Again

According to consumer spending data compiled by JPMorgan, it appears that the economic recovery in...

Tuesday, August 4, 2020, 03:41:34 PM

US Consumers Delve Into Savings to Keep up With Spending Habits as Incomes Tumble in October

As numerous stimulus programs that were part of the CARES Act ended over the summer,...

Thursday, November 26, 2020, 12:21:00 PM

US Economy Rebounds 6.4% Amid Surge in Consumer Spending

The US economy gained even more momentum in the first quarter of 2021, as unprecedented...

Friday, April 30, 2021, 10:20:00 AM