New numbers show personal income is up since last month in the U.S. while spending is way down. We are stretching your dollar with how experts hope healthy financial habits form even after the pandemic is over.
It’s no surprise that the pandemic has affected the U.S. economy. But in the latest personal income and outlays report released by the U.S. Bureau of Economic Analysis, we’re seeing by how much.
According to the BEA, personal income increased by an estimated $1.97 trillion in April from March. The agency says that’s due to the response of the spread of COVID-19 as federal economic recovery payments were sent to Americans. But with stay at home orders, consumer spending decreased by about $1.89 trillion.
For both goods, where food and beverages led the decreases, services like health care, food services and accommodations contributed the most to that decrease. But that’s not necessarily a bad thing. Experts say the turbulent time has forced us to take a hard look at our savings accounts, face the difference between wants and needs and learn to live without certain luxuries.
Healthy saving habits that we may carry with us even after the pandemic is over. This is also a good time to check in with your tax or financial advisors and decide what you should be doing with your money as the economy comes back around.