(PatriotHeadline.com)- Despite the fact that households across the United States have seen a dramatic loss of income because of COVID lockdown measures put in place, consumer spending has spiked at a record rate. Household spending shot up in May as some lockdown measures started to be relaxed, showing an increase of 8.2% compared to April.
It is the quickest and most extreme increase in consumer spending ever recorded by the Commerce Department, which goes back more than 60 years.
The numbers are positive, but they didn’t hit expectations. Economists that were surveyed by Econoday originally predicted that consumer spending would increase by 8.6%, meaning it wasn’t far off expectations.
The massive decline in consumer spending in April was also record-breaking, and occurred not because people were out of work or because the economy was struggling, but because of the Chinese coronavirus. President Donald Trump and state governors were forced to take drastic action to reduce the spread of the virus, resulting in millions of job losses.
Before the virus hit, the United States had record employment levels. Not that the Democrats want you to remember that.
Consumer spending, according to new data, surged by a record amount last month, but that doesn’t mean everything is back to normal. Consumer spending is still nowhere near the levels it was before the pandemic hit when Americans were enjoying President Trump’s tax cuts and job security. It is a sign, however, that Americans have in many cases chosen to use their tax relief payments issues earlier this year on goods sold at newly-reopened shops and even restaurants.
It indicates that many Americans have weathered the storm and may be in a good enough financial situation to get back to work and start seeing their incomes increasing again. Consumer spending also means that businesses are beginning to get back on their feet, ensuring that employees can go back to work.
The numbers look good, but they aren’t necessarily enough for President Trump to claim victory over the virus. Florida and Texas are already resorting to reintroducing some lockdown measures, meaning more economic uncertainty could be on the way.