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Consumer Spending Expected to See Boost in January, Helped by Stimulus Checks


I think the main narrative is that things turned around, said Stephen Stanley, chief economist at Amherst Pierpont. November and December were quite negative. As the virus was gaining momentum, people were hunkering down. In January, you had an unwind of that to a little extent.
Stanley said spending was also likely boosted by $600 stimulus checks sent to individuals in early January, as part of the last Covid relief bill, passed by Congress in late December. He expects sales increased by 0.8%, but that gains could be even bigger over the next few months.
The $900 billion in fiscal relief has gotten into the economy and it shows, said Mark Zandi, chief economist at Moody s Analytics. It s really strong across the board. It had been mostly retailing related to work from home. Electronic and appliance stores and online would be good examples of that. But in January, it was all of the above. The reopening retailers as well showed strength. Clothing stores and restauran ....

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