We’ll get more idea next week of how much President Biden’s stimulus is boosting demand.
Friday’s figures are likely to show a rise in personal spending in April as the cheques which arrived in March are spent. Not all of them will be, though: the numbers will also show that while the savings ratio dropped from its near-record 27.6 per cent last month it remains far above its long-term average. Some of the stimulus cheques are being used to pay down debts instead.
Nevertheless, the stimulus has improved consumer confidence. The Conference Board might say on Tuesday that this has risen to close to its highest level since 2000.