Higher income, spending and saving are expected to help power a growing economy.
Household income surged by a record 21.1% in March, as stimulus checks hit bank accounts and propelled consumer spending.
The surge reflects $1,400 stimulus checks and other government aid included in a $1.9 trillion fiscal relief package signed into law in March.
“If we have Covid-19 cases under control, that would ideally make way for us to reopen the services sector of the economy,” said Pooja Sriram, U.S. economist at Barclays. “That, in fact, is a crucial aspect of ensuring that this recovery continues.”
Stimulus payments included in the latest package propelled spending the most of all three rounds of pandemic stimulus checks, according to data-analytics company Earnest Research.