U.S. consumer spending plunged by a record-shattering 13.6 percent in April as the viral pandemic shuttered businesses, forced millions of layoffs and sent the economy into a deep recession. Last month’s spending decline was far worse than the revised 6.9 percent drop in March, which itself had set a record for the steepest one-month fall in records dating to 1959. That form of income, though, will likely fade in coming months as certain government aid programs expire. Friday’s report showed sharp declines in consumer spending across the board — from durable goods like cars to non-durable items such as clothing to services ranging from doctor visits to haircuts. The depth of the spending drop is particularly damaging because consumer spending is the primary driver of the economy, accounting for about 70 percent of economic activity.

Source: The Standard June 10, 2020 15:09 UTC