US consumer spending rebounded strongly in January as the government doled out additional pandemic relief money to low-income households and new Covid-19 infections dropped, setting up the economy for faster growth in the first quarter.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 2.4 percent last month after decreasing 0.4 in December, the Commerce Department said on Friday. Personal income shot up 10 percent last month.
Economists polled by Reuters had forecast consumer spending rebounding 2.5 percent in January and income accelerating 9.5 percent.
By Lucia Mutikani; Editor: Alex Richardson