On Friday, US Commerce Department said that US Consumer Spending, the lifeblood of US economy accountable for roughly 66% of entire economic activity, roared back sharply in March in light of a boost in household incomes as most adult Americans received an additional one-off pay-check of $1,400 under the Biden Administration’s $1.9 trillion stimulus package, paving ways for further momentum in spending over second quarter of the year.
Apart from a sweeping rebound in consumer spending, other economic data published earlier in the day had unwrapped that US labour costs soared to their highest level in more than 14 years over the first quarter, mostly spearheaded by an acceleration in competition for workers to step up production which eventually had led to a sharp pick up in wage growth.
Besides, in the latest flashpoint of a booming US economy, the broad-based rise in consumer spending comes over the heels of a 6.4 per cent GDP (Gross Domestic Product) growth in first quarter in the United States, the second-highest level since Q4, 2003.
US Consumer Spending sharply claws back in March
On top of that, according to US Commerce Department data published earlier in the day, US Consumer Spending surged 4.2 per cent in March following a weather-related slump of 1.0 per cent in February on an annualized basis.
Meanwhile, branding the upbeat consumer spending in March “a beginning of strong recovery across the country,” a head of Consumer Banking at Citizens in Boston, Brendan Coughlin said following the announcement, “While we aren't completely out of the woods yet, today's report shows the beginning of an economic rebound.
Assuming no setback in the continued rollout of the vaccines, U.S. consumers are well-positioned in the second half of the year to stimulate strong economic growth across the country. ”