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US consumer spending leaps as late-December stimulus hits households, Bank of America says

January 22, 2021


Credit- and debit-card spending accelerated through the first two weeks of January as stimulus passed by President Donald Trump bolstered households’ balance sheets.

Card spending climbed 6% from the year-ago period over the week that ended January 16, Bank of America said in a Thursday note, citing aggregated card data. The climb follows a 9.7% year-over-year jump the week prior.

The spending data is among the first to detail the impact of the $900 billion stimulus measure passed in late December. The package included $600 direct payments, expanded unemployment insurance, and education funding. Eligible Americans began receiving payments within days of the passage, a marked improvement from the CARES Act’s much slower rollout.

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