Many US consumers will start 2021 right away with savings that are likely to help fuel the economic recovery this year.
The latest federal aid package Covid-19 sent $ 600 checks to many households who also received aid money last year, while more affluent households have built money by curbing their spending during the pandemic.
According to analysis by Berenberg Economics, Americans saved $ 1.4 trillion in the first three quarters of 2020, or about twice as much as in the same period last year. That amount equates to nearly 10% of household spending in 2019, Berenberg chief economist Holger Schmieding estimates.
“In this unusual recession, governments have been extraordinarily generous. People have not been able to spend the money, so they have the money and the will to spend,” said Mr Schmieding. Once business restrictions are lifted and people feel safe to go out again, “there will be a lot of spending – I suspect the beaches will be busy, the pubs will be busy” and “May and June will it’s in full swing, ”he said.
President Biden is calling for a new $ 1.9 trillion Covid-19 aid package to help Americans weather the economic shock of the pandemic. His plan includes direct payments of $ 1,400 per person to most households and $ 400 per week unemployment insurance through September.