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

Rhea-AI Summary

Bank of America Institute's latest Consumer Checkpoint report indicates a resilient U.S. consumer spending landscape, despite inflationary pressures. In May, credit and debit card spending rose 9% year-over-year, fueled by a 16% increase in credit card spending. Overall payments grew by 6%, with transaction volumes up 8%. Notably, gasoline spending surged to 7.8% of total spending. Regional disparities exist, with Miami showing a 6.8% increase in household spending versus 1.4% in Chicago. Overall, households maintain higher savings than pre-pandemic levels.

Positive

• Credit and debit card spending up 9% year-over-year in May.
• Credit card spending rose 16% year-over-year.
• Total payments growth across all channels up 6% year-over-year.
• Transaction volumes increased by 8% year-over-year.
• Households maintaining higher savings compared to pre-pandemic levels.

Negative

• Inflation challenges households' purchasing power.

Despite challenges from higher inflation, households continued to spend at a healthy pace, with spending on services like travel and entertainment continuing to grow

NEW YORK, June 6, 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:

• Aggregated Bank of America credit and debit card spending was up 9% in May¹ 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, 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

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

 

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SOURCE Bank of America Corporation

FAQ

What does the latest Bank of America Consumer Checkpoint report say about consumer spending?

The report indicates that credit and debit card spending rose 9% year-over-year in May, driven by a 16% increase in credit card spending.

What was the total payments growth reported by Bank of America in May 2022?

Total payments growth across all channels was up 6% year-over-year in May 2022.

How did gasoline spending change according to Bank of America's findings?

Gasoline spending as a share of total card spending surged to 7.8% for the week ending May 28, 2022.

Which region showed the highest increase in household spending?

The South outpaced other regions, with Miami residents' spending increasing by 6.8% year-over-year.

What is the impact of inflation on household purchasing power according to the report?

The report highlights that inflation is challenging households' purchasing power.