Flush With Cash, Americans Are Buying Everything From iPhones To Teslas

From iPads to dresses, Americans flush with cash are stepping up their spending, helping turbo-charge the U.S. economy.

The Commerce Department reported Friday that personal income jumped 21.1% in March — the largest increase on record as the government sent out $1,400 relief payments as part of the $1.9 trillion coronavirus rescue effort.

Personal spending also jumped by 4.2%. The stimulus checks arrived at a time of rising hope as coronavirus vaccines continue to roll out.

And spending is also increasing from wealthier Americans, even as many continued to squirrel money away towards their savings.

"There was a very quick money burning a hole in their pocket among lower-income groups. But now we're seeing higher-income groups also spending," said Jonathan Silver, CEO of Affinity Solutions, which tracks credit card spending. "People were just saying, 'Hey, we're about to go outside. We see a sort of sense of normalcy, so I need to refresh my wardrobe."