Bank of America Credit and Debit Card Data Shows Continued Growth in Consumer Spending, up 9% year-over-year in May

June 6, 2022 at 10:01 AM Eastern

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 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:

  • Aggregated Bank of America credit and debit card spending was up 9% in May 1 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.”

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.

For more Bank of America news, including dividend announcements and other important information, register for email news alerts.

 

Reporters may contact:

Melissa Anchan, Bank of America
Phone: 1.646.532.9241
melissa.anchan@bofa.com

 

1 Card spending per household data covers the first 28 days of May. All other reference to May refer to data through month-end.

Categories

June 6, 2022 at 10:01 AM Eastern

Bank of America Credit and Debit Card Data Shows Continued Growth in Consumer Spending, up 9% year-over-year in May

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 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:

  • Aggregated Bank of America credit and debit card spending was up 9% in May 1 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.”

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.

For more Bank of America news, including dividend announcements and other important information, register for email news alerts.

 

Reporters may contact:

Melissa Anchan, Bank of America
Phone: 1.646.532.9241
melissa.anchan@bofa.com

 

1 Card spending per household data covers the first 28 days of May. All other reference to May refer to data through month-end.

Categories

What would you like the power to do?

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.

Content contained herein may have been produced by an outside party that is not affiliated with Bank of America or any of its affiliates (Bank of America). Opinions or ideas expressed are not necessarily those of Bank of America nor do they reflect their views or endorsement. These materials are for informational purposes only. Bank of America does not assume liability for any loss or damage resulting from anyone's reliance on the information provided. Certain links may direct you away from Bank of America to an unaffiliated site. Bank of America has not been involved in the preparation of the content supplied at the unaffiliated sites and does not guarantee or assume any responsibility for its content. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “ MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.

Trust and fiduciary services are provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation (“BofA Corp.”). Insurance and annuity products are offered through Merrill Lynch Life Agency Inc. (“MLLA”), a licensed insurance agency and wholly-owned subsidiary of BofA Corp.

Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits Are Not Insured by Any Governmental Agency Are Not a Condition to Any Banking Service or Activity

 

Bank of America Private Bank is a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of Bank of America Corporation (BofA Corp.).

"Bank of America" is the marketing name for the global banking and global markets business of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, BofA Securities, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is registered as a futures commission merchant with the CFTC and is a member of the NFA.

Company goals are aspirational and not guarantees or promises that all goals will be met. Statistics and metrics included in our ESG documents are estimates and may be based on assumptions or developing standards.

Bank of America, N.A. Member FDIC. Equal Housing Lender
© 2024 Bank of America Corporation. All rights reserved.

Connect with us