U.S. consumer spending dropped a record 13.6% in April, the largest drop since records began in 1959, the Commerce Department reported Friday. Economists surveyed by Bloomberg had anticipated a 12.8% decline.
Compared to April 2019 (estimates):
- Restaurants and hotel spending dropped 50%
- Healthcare expenditures fell around 40%
- Spending on autos saw a 40% decrease
- Furniture and appliance spending declined 20%
- Clothes and shoe purchases diminished 50%
As a result of the lack of spending, personal income increased by a record 10.5%. The personal savings rate also jumped to a record high of 33%.
The Commerce Department report showed that the government's one-time coronavirus relief payments of $1,200 and the weekly unemployment allotment of $600 distributed under the CARES Act account for a majority of gains in April.