Economics

Soaring U.S. Incomes Help Drive Biggest Spending Gain Since June

  • Personal income advanced 10% on government stimulus payments
  • Savings rate jumped in January to 20.5%, highest since May
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U.S. personal incomes soared in January as Americans received another round of pandemic-relief checks, helping to re-charge the economy with the strongest spending advance in seven months.

The 10% gain in incomes exceeded forecasts and was the largest in nine months, a Commerce Department report showed Friday. Purchases increased 2.4% from the prior month, following a downwardly revised 0.4% decline in December.