Spending on Services, including Travel, Entertainment, and Dining, up 20% compared to pre-pandemic levels
Typical Bank of America branch in Los Angeles. (Credit: Coolcaesar at en.wikipedia)
The Bank of America Institute today 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.
Highlights of the publication:
Aggregate Bank of America credit and debit card spending was up 13% in April year-over-year; within this, credit card spending rose by 22% YoY, while debit card spending increased by 6%.
Overall card spending per household is up 23.7% relative to pre-pandemic levels (2019), with spending on this measure amongst lower-income households up 33.1%.
Total payments growth across all channels was up 25% year-over-year in April, with growth elevated due to timing of tax payments compared to 2021.
Overall transactions were up 8% year-over-year, a more normalized indication of overall consumer health.
Spending at airlines and travel agencies was up 60% year-over-year, and spending at event ticket agencies was up 140%.
“While higher inflation naturally leads to higher spending, it is clear from our data that consumer strength goes beyond this as the amount spent on credit and debit cards is outpacing the rate of inflation,” said David Tinsley, senior economist for the Bank of America Institute. “Overall, our data continues to paint a healthy picture of the U.S. consumer.”
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.
Source: Company Press Release