Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: Oh, to be young…?
While their wage growth remains positive, younger generations’ spending has decelerated and their use of buy now, pay later is up.
June 2025
Key takeaways
- Credit and debit card spending per household increased 0.8% year-over-year (YoY) in May after a gain of 1% YoY in April, according to Bank of America aggregated card data. Seasonally adjusted (SA) spending per household declined 0.7% month-over-month (MoM), with the seasonally adjusted annualized growth rate (SAAR) at -0.9% for May.
- In our view, May weakness in spending partly reflects declining gasoline spending, some payback from earlier tariff-related "buying ahead", and the impact of relatively poor weather. While we do not discount the possibility that consumer momentum has slowed further, the labor market continues to provide fundamental support to the consumer.
- Younger generations' card spending growth is weaker than that of older generations. One reason could be that the young make up a high share of those with major expenses such as housing costs, childcare and student loans, some of which are reflected in their increasing use of buy now, pay later (BNPL).
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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