Connect with us

Finance

Bank of America Payments and Spending Data shows Consumers are not Wilting in the Summer Heat

Payments and Spending

The Bank of America Institute published a new article which shows consumer spending continues to increase in July but some consumers are feeling the effects of rising rents. Bank of America internal data suggest median rent payments increased by 7.4% year-over-year in July. That said, there are many reasons to remain positive about the steady resilience of US consumers: lower gas prices provided some relief to consumers in July, and promotional events from retailers boosted spending on goods. Additionally, households’ deposit and savings balances remain elevated and consumers have not yet shown signs of increased borrowing.

Highlights of the publication:

  • Bank of America total payments increased 7% year over year in July, roughly in line with June’s data; this figure offers a holistic view of money flow and includes credit card, debit card, Automated Clearing House, wires, bill pay, person-to-person, cash and checks.
  • Card spending per household increased by 5.3% year over year, down from 5.7% in June. With US Consumer Price Index inflation at 9.1% in June and Personal Consumer Expenditure (PCE) inflation at 6.8%, it appears “real (inflation-adjusted) spending” continues to be under pressure.
  • According to internal Bank of America data, all income groups are feeling the impact of higher rents, with the biggest rent increase seen by those households with income between $51,000-150,000.
  • Younger consumers are getting squeezed the most by higher rent inflation with median payment up 16% year over year in July for Gen Z, compared to just 3% for Baby Boomers.
  • As oil prices fell throughout July, average gas spending as a share of total card spending per household fell to 9.3% in June for lower-income 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.”

Source: Bank of America

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Text Translator

Awards Ceremony

Click on the Image to view the Magazine


Global Brands Magazine is a leading brands magazine providing opinions and news related to various brands across the world. The company is head quartered in the United Kingdom. A fully autonomous branding magazine, Global Brands Magazine represents an astute source of information from across industries. The magazine provides the reader with up- to date news, reviews, opinions and polls on leading brands across the globe.


Copyright - Global Brands Publications Limited © 2022. Global Brands Publications is not responsible for the content of external sites.

Translate »