Economics

U.S. Personal Spending Plummeted by a Record 7.5% in March

Stores stand closed as a precaution due to the cornavirus pandemic in the Times Square neighborhood of New York on March 16.Photographer: Gabriela Bhaskar/Bloomberg

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By Reade Pickert

April 30, 2020 at 12:32 PM UTC

Updated on

April 30, 2020 at 12:50 PM UTC

This article is for subscribers only.

U.S. personal spending plummeted in March by the most on record as widespread shutdowns and job losses from the Covid-19 pandemic wreaked havoc on the economy’s main engine -- consumers.

Household outlays, which account for about two-thirds of the economy, plunged 7.5% from the prior month, the sharpest drop in Commerce Department records back to 1959, data showed Thursday. The median estimate in a Bloomberg survey of economists called for a 5.1% slump. Incomes declined 2%.