Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: Buying ahead, easing or doing fine?
Consumers continued spending in March, but tariffs, slowing wage growth and inflation may pose headwinds.
April 2025
Key takeaways
- March card spending per household was up 1.1% year-over-year (YoY), according to Bank of America aggregated credit and debit card data. Seasonally-adjusted card spending per household rose 0.2% month-over-month (MoM).
- Higher-income households continued to show relatively stronger spending growth than lower-income households, which is consistent with their stronger after-tax wages and salaries growth. Tax refunds are slightly higher than last year, but currently skew a little toward lower- and middle-income households.
- The import content of consumer goods and services is substantial, raising the risk of price rises from higher tariffs. In Bank of America data we find some evidence that consumers were buying durables ahead of the introduction of tariffs. The evidence is strongest in autos sales.
- Services spending has been the mainstay of the strong overall consumer spending story in recent years. However, Bank of America card data indicates that “nice-to-have” discretionary services spending eased in March, while more inflation-driven spending on necessities such as insurance, rent and utilities continues to rise.
Consumer Checkpoint is a regular publication from Bank of America Institute. It aims to provide a holistic and real-time estimate of U.S. consumers’ spending and their financial well-being, leveraging the depth and breadth of Bank of America proprietary data. Any such Bank of America proprietary 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.
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