Bank of America Card Spending Continues to Increase, up 13% year-over-year in April

Rhea-AI Summary

Bank of America released findings from its latest Consumer Checkpoint, showing U.S. consumer spending rose significantly. In April, overall credit and debit card spending increased 13% YoY, with credit spending up 22% and debit spending 6%. Households spent 23.7% more compared to pre-pandemic levels, with lower-income households seeing a 33.1% rise. Notably, spending on airlines and travel surged 60%.

Overall, payments grew 25% YoY, reflecting robust consumer health.

Positive

• Aggregate spending on Bank of America credit and debit cards increased 13% YoY in April.
• Credit card spending rose 22% YoY, indicating strong consumer confidence.
• Total payments growth across all channels was up 25% YoY.
• Airline and travel agency spending surged 60% YoY, highlighting recovery in the travel sector.
• Overall card spending per household increased 23.7% compared to pre-pandemic levels.

Negative

• None.

Spending on Services, including Travel, Entertainment, and Dining, up 20% compared to pre-pandemic levels

NEW YORK, May 5, 2022 /PRNewswire/ -- 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."

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 visit Bank of America newsroom and register for email news alerts.

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

FAQ

What was the change in Bank of America card spending in April 2022?

In April 2022, Bank of America reported a 13% increase in card spending year-over-year.

How much did credit card spending rise according to the latest Consumer Checkpoint?

Credit card spending rose by 22% year-over-year in April 2022.

What is the overall payments growth reported by Bank of America for April 2022?

Total payments growth across all channels was up 25% year-over-year in April 2022.

How much more are lower-income households spending compared to pre-pandemic levels?

Lower-income households increased their spending by 33.1% relative to pre-pandemic levels.

Which sectors saw significant growth in spending as per the Consumer Checkpoint?

Spending at airlines and travel agencies was up 60% year-over-year, while event ticket agencies saw a 140% increase.