In its consumer checkpoint note Wednesday, Bank of America said its Winter Spending Survey suggests consumers are planning to pull back a bit this year, potentially trimming their spending on meals out and other experiences.
The firm explained that consumer spending finished solidly in 2023, with total card spending per household increasing by 0.2% year-over-year (YoY), while on a seasonally adjusted (SA) basis, per household spending was positive for the second month in a row, rising 0.1% month-over-month (MoM).
"Holiday spending started strong but lagged somewhat in December," they added.
"Higher-income households' after-tax wages and salaries growth dipped into negative YoY territory at the end of 2023, while lower-income households' growth increased, underscoring that the negative gap between these cohorts' spending growth may remain at the start of 2024," wrote the firm.
BofA analysts also noted that the top two 2024 financial resolutions, according to its survey respondents, are increasing savings and paying off credit cards.
"In addition to reducing spending, 48% and 33% of respondents, respectively, said that they would consider sticking to a budget and utilizing high-yield savings accounts to achieve progress toward their goals," said the investment bank.