Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Bank of America's data shows continued spending momentum among consumers

Published 05/10/2024, 12:34 AM
© Reuters.
BAC
-

According to Bank of America's latest analysis, consumer spending maintained its momentum in April despite various seasonal factors impacting recent data trends.

Bank of America's aggregated credit and debit card spending per household rose by 1.0% year-over-year (YoY) in April, building on a 0.3% YoY increase observed in March. While recent data has been influenced by the early Easter and other seasonal fluctuations, the underlying spending momentum remains "relatively soft but stable."

Lower-income households have notably driven spending growth, outpacing higher-income counterparts in Bank of America's data. This trend aligns with an apparent rise in after-tax wages and salary growth for lower-income groups, coupled with sustained savings buffers.

However, analysts caution that the cooling labor market warrants close monitoring. Despite tax refunds skewing towards lower-income cohorts, increased debt payments may have tempered the boost to spending typically associated with tax refunds.

Rising property insurance costs pose a significant headwind for consumers, adding to economic challenges. While some factors contributing to higher insurance payments may persist, consumers continue to navigate spending decisions amidst evolving financial dynamics.

Overall, Bank of America's data underscores continued resilience in consumer spending.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.