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The Financial Institution of the usa Institute printed a brand new article today which shows consumer spending is constantly on the rise in This summer however, many individuals are feeling the results of rising rents. Bank of the usa internal data suggest median rent payments elevated by 7.4% year-over-year in This summer. That stated, many reasons exist to stay tolerant of the steady resilience people consumers: lower gas prices provided some respite to consumers in This summer, and marketing occasions from retailers boosted paying for goods. Furthermore, households’ deposit and savings balances remain elevated and consumers haven’t yet proven indications of elevated borrowing.
Popular Features of the Publication:
- Bank of America total payments elevated 7% annually in This summer, roughly consistent with June’s data this figure provides a holistic look at money flow and includes charge card, bank card, Automated Clearing House, wires, bill pay, person-to-person, cash and checks.
- Card spending per household elevated by 5.3% annually, lower from 5.7% in June. Around Consumer Cost Index inflation at 9.1% in June and private Consumer Expenditure (PCE) inflation at 6.8%, it seems “real (inflation-adjusted) spending” remains pressurized.
- Based on internal Bank of the usa data, all earnings groups feel the outcome of greater rents, using the greatest rent increase seen by individuals households with earnings between $51,000-150,000.
- More youthful individuals are getting squeezed probably the most by greater rent inflation with median payment up 16% annually in This summer for Gen Z, when compared with just 3% for Seniors.
- As oil prices fell throughout This summer, average gas spending like a share of total card spending per household fell to 9.3% in June for lower-earnings households (<$50k per year), down from a peak of nearly 10% in June.
“Our internal spending and payments data suggests consumers are not wilting in this summer heat,” said Anna Zhou, economist for the Bank of America Institute. “While wallets are getting squeezed for the 34% of US households who are renters, relief from lower gas prices and retail promotions encouraged consumers to continue to spend throughout July.”
About the Consumer Checkpoint
Consumer Checkpoint is a regular publication from the Bank of America Institute. It aims to provide a holistic and real-time estimate of US consumers’ spending and their financial well-being, leveraging the depth and breadth of Bank of America proprietary data. Such data is not intended to be reflective or indicative of, and should not be relied upon as, the results of operations, financial conditions, or performance of Bank of America.
See the Consumer Checkpoint for methodology and definitions.
About the 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 4,000 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 55 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.
