Personal income jumps 21%, the biggest rise since records began

• March Personal Income and Outlays: +21.1% M/M vs. +20.3% consensus and -7.0% prior (revised from -7.1%).
• Consumer spending: +4.2% M/M vs. +4.0% consensus and -1.0% prior.
• PCE Price Index: +0.5% M/M vs. +0.4% consensus and +0.2% prior.
• Core PCE Price Index: +0.4% M/M vs. +0.3% consensus and +0.1% prior.
• The increase in personal income reflects the increase in direct payments to Americans under the American Rescue Plan Act to provide relief during the pandemic.
• It's the biggest rise since monthly records started in 1946.
• The $616B increase in current dollar personal consumption expenditures (known as PCE) reflects an increase of $403.0B in spending for goods and a $213.1B increase in spending for services.
• Within services, the largest contributor to the increase was spending for food services and accommodations, indicating that people are going to restaurants (or getting takeout) and hotels.
• Personal savings was at $6.04T in March, with the personal saving rate at 27.6%.