The most recent data release from the Bureau of Economic Analysis (BEA) showed that personal income surged in January to a seasonally adjusted annual rate (SAAR) of $21,454 billion. The 10% increase in personal income was largely the effects of the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, which includes $1,660.9 billion in Economic impact payments. Compensation of employees inched up 0.7% in January, after an increase of 0.5% in December 2020.

Real disposable income (income remaining after adjusting for taxes and inflation) was up 11% after a 0.2% increase in December 2020, marking the largest monthly gains since May 2020. Personal consumption expenditures (PCE) rose 2.4% in January after a decline of 0.4% in December 2020.

In January, the rise in personal income pushed the personal savings rate to 20.5%, compared to a record high savings rate of 33.7% in April 2020 Personal savings remained elevated at an annual pace of $3.93 billion, the highest level after May 2020.