Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: Some chills, but no shadows
The financial health of consumers looks solid, though rising auto payments may be a risk if the economy deteriorates.
January 2025
Key takeaways
- We saw some chills in January's consumer spending, but unlike Punxsutawney Phil this year, we saw no serious shadows. January spending per household was up a solid 1.9% year-over-year (YoY), according to Bank of America aggregated credit and debit card data. While seasonally-adjusted card spending dropped 0.4% month-over-month (MoM), this looks largely weather related.
- The improvement in card spending growth over the last few months has been seen across generations, though especially for Baby Boomers and Gen X, likely due to a relative improvement in their after-tax wage and salary growth, according to Bank of America deposit data.
- Auto sales have risen sharply since fall 2024. With pricing firm and auto loan rates still relatively high, auto loan payments have been rising. A robust labor market means the rise in payments compared to after-tax wages and salaries looks fairly benign for now, but this does raise some risks if the labor market were to deteriorate.
- Overall, the financial position of households remains solid, in our view. The contribution rate to Bank of America 401(k) plans rose last quarter and while savings buffers are coming down, they remain comfortable.
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.
Get the latest from Bank of America
Institute delivered right to your inbox.
