Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: The great convergence
After more than a year of a K-shaped economy, consumers are looking increasingly alike as wage and spending gains converge.
August 2026
Key takeaways
- Total card spending growth eased to 5.0% year-over-year (YoY) in July, from 6.3% in June, according to Bank of America internal data. But much of the moderation appears tied to the fading of temporary boosts (i.e., the timing of major online promotions and World Cup-related spending) rather than a broad deterioration in underlying demand. Spending ex-gas still rose a solid 4.3% YoY.
- What was once a "K"-shaped consumer is increasingly becoming one of convergence, with spending growth converging across income groups. The exception remains the top 5% of earners, where strong balance sheets and rising asset prices continue to support outsized spending growth.
- Against this backdrop, consumer financial health looks solid. Despite cost-of-living pressures from areas such as gasoline, the share of households paying off their credit card bills in full each month has risen. And there is little sign of an acceleration in households drawing upon their savings.
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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