Something unusual and interesting happened in April: U.S. personal income grew at the fastest pace on record, while consumer spending fell at the fastest pace on record. The government's massive outlays led to a surge in personal income, but that money was mostly saved rather than spent and did not stimulate economic activity. Although wage income fell 8% from March to April, total personal income increased 10.5% due to a massive transfer of funds from the government to households in the form of one-off transfers and enhanced unemployment insurance. Why did people save so much? First, with much of the economy in lockdown, there were few spending opportunities. Second, people were averse to engaging in activities that required interaction with other people such as visiting restaurants and flying on airplanes. Third, many people lost jobs and were uncertain as to when jobs would return, so they hoarded cash. Finally, even people with jobs likely reduced spending in anticipation of possible trouble.

Read full statement below

full statement: A note on the global economy from Deloitte