Even though personal income rose by 10.5% due to stimulus checks, Consumer spending fell a record 13.6% in April.
“Workers in industries hard hit by the coronavirus, like retail and tourism, will remain uncertain about the economic outlook for a while, even with states reopening their economies. It’s going to probably lead these people to be very, very careful with spending their money.”
Camelia Kuhnen, finance professor at UNC-Kenan Flagler Business School