Personal Income Down 13.1% in April as Less Social Benefits Released. Spending Posts Modest Growth

Personal income in the United States fell by $3.21 trillion in April as the government released less social benefits during the month, the Department of Commerce reported.

• Personal income fell 13.1% month-on-month in April after recording a 20.9% growth in March.
• Disposable personal income dropped 14.6% or $3.22 trillion after March’s 23.4% increase.
• Economic stimulus released to Americans continued in April but at a lower level than the previous month.
• A decline was also reported in unemployment insurance after a drop in payments from the Pandemic Unemployment Compensation program.
• Personal spending posted growth of 0.5%, equivalent to $80.3 billion. Spending grew 4.7% in March.
• Spending for services increased by $112.6 billion in April, but was partly offset by the $32.3-billion decrease in spending for goods.
• Growth drivers were spending for recreation services and food services and accomodations.
• Downers were recorded in nondurable goods led by food and beverages.
• Personal outlays rose $82.8 billion, while personal saving stood at $2.81 trillion to bring the personal saving rate at 14.9%.