US personal income, consumer spending drop in Feb

Washington, March 27 (IANS) US personal income and consumer spending both dropped in February as fiscal support faded and Covid-19-related restrictions and closures continued, the Commerce Department reported.

Personal income decreased 7.1 per cent in February, according to estimates released on Friday by the Department's Bureau of Economic Analysis.

Personal consumption expenditures (PCE) decreased 1.0 per cent, reports Xinhua news agency citing the estimates.

The Bureau of Economic Analysis, meanwhile, noted that economic impact payments associated with the $900 billion relief package approved in December 2020 "declined sharply" in February and unemployment benefits continued, "but at a lower level".

"Additionally, restrictions and closures continued in some areas of the United States," the Bureau added.

While there are signs of recovery, the country is still down nearly 10 million jobs from its pre-pandemic peak, US Treasury Secretary Janet Yellen noted at a congressional hearing earlier this week.