U.S. consumer spending rebounds in January

U.S. consumer spending rebounded strongly in January as the government doled out additional pandemic relief money to low-income households and new COVID-19 infections dropped, setting up the economy for faster growth in the first quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 2.4% last month after decreasing 0.4 in December, the Commerce Department said on Friday. Personal income shot up 10% last month.

Economists polled by Reuters had forecast consumer spending rebounding 2.5% in January and income accelerating 9.5%.