After reporting a substantial increase in U.S. personal income in the previous month, the Commerce Department released a report on Friday showing personal income pulled back sharply in the month of February.
The Commerce Department said personal income plunged by 7.1 percent in February after skyrocketing by an upwardly revised 10.1 percent in January.
Economists had expected personal income to plummet by 7.3 percent compared to the 10.0 percent spike originally reported for the previous month.
The sharp pullback in personal income primarily reflected a decrease in government social benefits following the distribution of $600 stimulus checks in January.
The report also showed personal spending slumped by 1.0 percent in February after soaring by an upwardly revised 3.4 percent in January.
Economists had expected personal spending to decrease by 0.7 percent compared to the 2.4 percent jump originally reported for the previous month.