Personal spending in the United States rose better-than-expected 4.2% in March, the Commerce Department said in its report published on Friday. On the other hand, real personal spending expanded by 3.6%, failing to meet market estimates.
Personal income increased $4.21 trillion (21.1%) in the same month, slightly more than the estimates suggest. Disposable personal income (DPI) grew $4.18 trillion (23.6%) and personal consumption expenditures (PCE) $616 billion (4.2%).
“The increase in personal income in March largely reflected an increase in government social benefits. Within government social benefits, ‘other’ social benefits increased. The American Rescue Plan Act established an additional round of direct economic impact payments to households,” the report explained.