by Wolf Richter
Free money runs out, spending drops: that’s mantra now.
The wave of $600-stimmies that went out starting in late December was apparently used up by January. And the new $1,400-stimmies didn’t arrive in February, and so consumer income and spending dropped.
Spending on durable goods dropped 7.8% in February from January, to seasonally adjusted annual rate of $1.82 trillion, according the Bureau of Economic Analysis today. After January’s stunning 12% spike from the prior month and 22% spike from a year ago, February’s spending on durable goods was still up by 17.2% from February last year, the final month of the Good Times. So now everyone is counting on the big-fat new stimmies to turn this fiasco around: