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Stimmies Spark Record Surge In Personal Incomes In March, Spending Spikes

Tyler Durden's Photo
by Tyler Durden
Friday, Apr 30, 2021 - 08:37 AM

After February's MoM collapse in income (no stimmies) and drop in spending, analysts expected March's income and spending data to rebound massively as more government handouts reached the hungry American consumer. Analysts were right as personal income exploded by a record 21.1% MoM (vs 20.3% exp) and personal spending soared 4.2% MoM...

Source: Bloomberg

Totally normal...

Source: Bloomberg

All thanks to the government handouts - a record $8.2 trillion annualized in March!

That means a record 34% of all income is from the government...

And thanks to all that, spending is up 11.0% YoY (and incomes up 4.6% YoY)...

Source: Bloomberg

Private worker wages have surged YoY with government workers' wages down YoY...

And the savings rate rose to 27.6% (of DPI) vs 13.6% in February...

What the f**k are we going to do when the stimmies stop and we, the people become accountable for our own actions and lives once again? (Rhetorical question, of course).

Finally we note that The Fed's favorite inflation indicator - the PCE Deflator - rose 2.3% YoY, the highest since July 2018...

But of course, that's "transitory".

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