Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: Hunkered down, but healthy
Consumers continue to show moderate spending momentum, with most being in good financial health.
May 2025
Key takeaways
- April card spending per household was up 1% year-over-year, following the 1.1% rise in March, according to Bank of America aggregated credit and debit card data. Seasonally-adjusted spending per household was flat month-over-month.
- The gradual easing in consumer spending momentum is not just due to lower inflation — the growth in the number of transactions has also cooled. Consumers appear to be pulling back particularly on bigger ticket discretionary services like airline tickets and lodging.
- Lower-income households' spending growth is below that of their middle- or higher-income counterparts. In our view, this reflects their relatively weaker after-tax wages and salaries growth. However, lower oil prices may bring some relief.
- The financial position of most consumers appears sound. One sign of that: more consumers are paying off their credit card balances every month, according to Bank of America credit card data. However, we see some increase in the share of households making only the minimum payment on their credit cards, suggesting building pressures for some households.
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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