Personal income rose +0.5%, the biggest increase since May last year. Real Disposable personal income rose 1.1% in April. The stimulus plan, drove up personal current transfer receipts; it provided an extra payment for the unemployed. Taxes also fell, as the stimulus included tax credits. Excluding the stimulus package, real disposable income increased +0.7% in April. Wages and salaries were unchanged in April, the first time since September that wages didn’t fall. Small business income increase 0.4% in April, only the second gain in the past 6 months. Income from assets fell –0.1%, the seventh straight month decline. Income from transfer payments rose 2.3%, the sixth straight increase. “The income data was skewed by the stimulus, where unemployment insurance was accelerated and extended. If you take that out it doesn't look as good as it seems," - Peter Boockvar (equity strategist at Miller Tabak & Co in New York)
Source: Barron's, CNN Money
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