Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint
The young and the restless
June 2023
Key takeaways
- Bank of America internal data suggests consumer spending was broadly stable in May, with Bank of America total card spending per household up 0.1% month-over-month (MoM), seasonally adjusted. The year-over-year (YoY) growth rate remains negative at -0.2% YoY.
- Bank of America data shows older generations' spending growth is outstripping that of younger generations. Older households benefited from the COLA (cost-of-living adjustment) social security increase and typically have significantly more wealth, while younger generations are more exposed to higher housing costs and the pending end of the student loan repayment moratorium.
- All generations still have higher deposit buffers than before the pandemic and the share of credit cards in total card spending is little changed across all age groups. Slowing spending and the continued strength of the labor market likely mean that younger generations do not yet need to tap these 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.
