After spending collapsed (and incomes dropped) in March, April was expected to see even worse but there was a surprise!

While spending collapsed 13.6% MoM (the biggest drop on record), incomes soared 10.5% MoM (the biggest surge on record) as we assume that this reflects massive government transfer payments...

Source: Bloomberg

And on a YoY basis, the shift is massive... an 11.7% surge in incomes and 3.1% slump in spending...

Source: Bloomberg

The surge in incomes is entirely due to massive government transfer payments...

Here is that percentage change put in absolute context... basically, the government has added $3 trillion in annualized income... from $3.348TN in March to $6.367TN in April (both annualized)