While Consumer Sentiment has Weakened, Household Balance
Sheets Remain in Good Shape
NEW
YORK, July 7, 2022 /PRNewswire/ -- The Bank of
America Institute published a new article today which shows
consumer spending continues to demonstrate some signs of resiliency
despite a backdrop of rising inflation. Total aggregated Bank of
America credit and debit card spending was up 11% year over year in
June, compared to 13% and 9% in April and May year over year
respectively. Spending growth per household increased 3.3% year
over year in the 28 days prior to June
30. Gas prices continue to squeeze consumers but spending on
services such as travel and entertainment is still boosted by
pent-up demand. The labor market remains supportive of consumers,
and their balance sheets are in good shape.
Highlights of the publication:
- Aggregated Bank of America credit and debit card spending
was up 11% in June year-over-year; within this, credit
card spending rose by 16% year over year, while debit card spending
increased by 6% year over year
- Aggregated Bank of America credit and debit card spending
growth per household has been slowing, up 3.3% year over year
in the 28 days prior to June 30,
lagging broader economic indicators such as the Consumer Price
Index and Personal Consumption Expenditure. Some of this slowdown
may be due to the waning of the boost from pent-up demand for
vacations.
- Average gas spending as a share of total card spending per
household rose to 9.8% in June for lower-income
households (<$50k per year), up
from 7.7% in February.
- Looking at total card spending excluding gas and grocery, the
year over year growth rate for lower-income households contracted
1.0% year over year; for higher-income households, growth excluding
gas and grocery remained positive but is on a downward trend.
"Consumers are in better shape to respond to a slowdown in the
U.S. economy than they have been in many previous business cycles,"
said David Tinsley, senior economist
for the Bank of America Institute. "But with some slowdown in
services spending, we may need to wait until the summer is over to
get a clearer picture of the strength of the underlying consumer
momentum."
About the Consumer Checkpoint
Consumer Checkpoint is a regular publication from the Bank of
America Institute. It aims to provide a holistic and real-time
estimate of US consumers' spending and their financial well-being,
leveraging the depth and breadth of Bank of America proprietary
data. Such data is not intended to be reflective or indicative of,
and should not be relied upon as, the results of operations,
financial conditions, or performance of Bank of America.
About the 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.
For more Bank of America news, including dividend announcements
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Reporters may contact:
Melissa Anchan, Bank of America
Phone: 1.646.532.9241
melissa.anchan@bofa.com
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SOURCE Bank of America Corporation