Economics
Surge in U.S. Incomes Masks Fragile Situation for Many Americans
- One-time stimulus payments cause outsize gain in report
- Jobless benefits only replacing some income for the unemployed
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April’s record plunge in U.S. consumer spending came with an unexpected twist: a record surge in Americans’ incomes, which had been forecast to decline amid massive job losses.
It doesn’t mean, though, that Americans will continue to have that level of cash on hand in the coming months, or that consumer spending is going to spring back to pre-Covid-19 levels any time soon.