After-Tax Incomes And Spending Show Big Gains
WASHINGTON D.C. (AP) — The millions of economic stimulus payments gave a massive jolt to household finanances in May, sending after-tax incomes up by the largest amount in 33 years.
The payments helped boost consumer spending by the largest amount in six months.
The Commerce Department reported that disposable incomes, the amount left after paying taxes, surged by 5.7 percent last month.
It was the biggest increase since May 1975, reflecting $48.1 billion in rebate payments made last month. The surge in incomes helped boost consumer spending by 0.8 percent, the biggest gain since last November.
