Despite challenges from higher inflation, households continued to spend at a healthy pace, with spending on services like travel and entertainment continuing to grow
The Bank of America Institute released its findings from the latest Consumer Checkpoint, which aims to provide a holistic and real-time estimate of U.S. consumers’ spending and their financial well-being, leveraging the breadth and depth of Bank of America proprietary data from its 67 million consumer and small business clients.
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- Aggregated Bank of America credit and debit card spending was up 9% in May1 year-over-year; within this, credit card spending rose by 16% year-over-year, while debit card spending increased by 4%.
- Total payments growth across all channels was up 6% year-over-year in May, from sources like wire payments, Automated Clearing House (ACH), cards, Billpay, etc., while overall transaction volumes were up 8% year-over-year.
- Gasoline spending as a share of total card spending surged to 7.8% for the week ending May 28, up from 6.4% in February; lower-income consumers (<$50k/year), average share-of-gas-spending rose to 9.5%.
- Spending per household increases varied by region, with the South outpacing the rest of the country while the Midwest lags on a year-over-year basis. For example, compared to the 4.3% year-over-year increase in average of spending per household throughout May on a national basis, Miami residents’ spending increased 6.8% while Chicago residents’ spending increased per household rose by 1.4%.
“Our card data shows continued growth in consumer spending, but inflation is challenging households’ purchasing power,” said David Tinsley, senior economist for the Bank of America Institute. “That said, spending on services like travel and entertainment remained strong and households continued to have higher savings than they did before the pandemic. Overall, we still remain cautiously optimistic for the U.S. consumer.”
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Read the full Consumer Checkpoint for additional details.
Bank of America Institute
The Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, Environmental, Social and Governance (ESG), and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 67 million consumer and small business clients, 54 million verified digital users, $3.8T in total payments in 2021 and $1.4T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,100 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 54 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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