Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: Early wrinkles for younger spenders
Spending and wage growth continue to diverge for higher- and lower-income consumers.
September 2025
Key takeaways
- Total credit and debit card spending per household increased 1.7% year-over-year (YoY) in August, after a gain of 1.8% YoY in July, according to Bank of America aggregated card data. Seasonally adjusted spending per household rose 0.4% month-over-month (MoM), the third increase in a row.
- We continue to see stark differences in income and spending growth across income cohorts, with the divergence in after-tax wage and salary growth widening again in August. Spending growth is weakest amongst younger generations and Gen X. The weakening labor market appears to be impacting younger people, particularly because changing jobs no longer results in as big of a pay bump.
- Some relief for the younger generations could come from easing housing costs. Our measure of new rent payments suggests they are dropping back, perhaps as households trade down. If sustained, this may help narrow the gap between the stronger spending growth of homeowners versus renters.
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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