U.S. household income rose rapidly last month as the government handed out enhanced tax breaks for parents, priming the economy for stronger growth once the Delta variant subsides.

The 1.1% gain in household income marked the biggest jump since March, the Commerce Department said Friday. Families started receiving tax credits worth up to an additional $1,600 per child this year as part of a $1.9 trillion pandemic-relief package passed by Congress this spring.

Many families stashed the extra money, boosting their already high savings.

Growth in consumer spending slowed last month to 0.3%—less than a third June’s spending increase of 1.1%. Economists believe the Delta variant, a highly contagious strain of Covid-19, is partly to blame for the slower growth. Consumer fears of infection, new business restrictions and mask mandates are likely leading households to pull back in some areas, economists said.

Spending on services, such as restaurant outings and sporting events, grew sharply last month but was partly offset by a decline in spending on goods, such as cars and refrigerators. Overall spending growth could further slow after a rash of canceled events—including concerts, conferences, and festivals—announced in recent days.