Free-Money Stimmies Blow Out Consumer Income & Spending on Goods for a Glorious WTF Chart of the Year | Wolf Street

Spending on durable goods spiked by 10.8% in March from February, to a seasonally adjusted annual rate of $2.0 trillion, up 33% from March 2019.

A month ago, when February durable goods fell after the $600 stimmies got spent in January, I said, “So now everyone is counting on the big-fat new stimmies to turn this fiasco around.” And they did, for another WTF moment:

In the first quarter, this has shown up in the GDP data release yesterday, where the inflation index used to adjust GDP to inflation jumped by 3.8% annualized in Q1, more than double the rate in Q4, showing the extent to which inflation has accelerated. So part of the increase in spending displayed here in all its glory comes from big price increases.

Free-Money Stimmies Blow Out Consumer Income & Spending on Goods for a Glorious WTF Chart of the Year | Wolf Street