Saturday, February 27, 2021

American Household Income Surging! What Two Sectors Will Be The First To Benefit? -- February 27, 2021

Link here.

From the linked article;

Pandemic aid to households is pouring money into the U.S. economy, priming it for rapid growth this year. 
Household income—the amount Americans received from wages, investments and government programs—rose 10% in January from the previous month
The increase was the second largest on record, eclipsed only by last April’s gain, when the federal government sent an initial round of pandemic-relief payments. 
Household income has risen 13% since February 2020, the month before the pandemic shut down large segments of the economy. 
January’s increase in household income was almost entirely due to federal pandemic-relief aid included in a $900 billion stimulus program signed into law in late December. That package included one-time cash payments of $600 and a special weekly unemployment benefit of $300 that the government started sending to households.

Quick! Name the first "large" purchase Americans make when they experience a windfall (in cash)! From what sector do Americans make their second "large" purchase after the first?

And remember: the next stimulus checks will be arriving in less than a month.

And, some families will be eligible for up to $14,000.

And then this, from ZeroHedge:

Of course, in a month when household personal incomes exploded thanks to the $900BN stimulus checks, coupled with the collapse in Covid cases and hospitalizations, the resultant burst of economic strength is hardly a surprise.


On a trivial note:

A majority of Goldman's sector analysts report that business activity in their industry is at or above normal levels.

Most also indicated that last week's winter storm in the South and Midwest did not significantly affect their industry.

I opined before the Texas Freeze was even over that it would be forgotten in two weeks and everything would be back to "Covid-normal" in two months. GS seems to agree.

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Gender Differences: Undergraduate Degrees

Chart of the day from Mark Perry, with commentary.

2 comments:

  1. i don't know about anyone else, but when i experience a windfall (in cash) i lay in a supply of pretzels..

    ReplyDelete
    Replies
    1. Yes, and in Texas we lay in a supply of jalapeno-flavored pretzels.

      Delete