Spending on Services, including Travel, Entertainment, and Dining, up 20% compared to pre-pandemic levels
The Bank of America Institute has 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."
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