Read our full analysis for a more in-depth look at these trends.
Taking the pulse of consumer health
While most households remain financially healthy, inflation, a slowing job market, and reliance on credit pressure a small share.
April 2025
Key takeaways
- According to Bank of America aggregated card data, higher-income households have seen comparatively stronger spending and wage growth since late 2023. Meanwhile lower-income households' YoY spending growth as eased over the past two years, with their March 2025 YoY wage growth only about a third of their long term (2018-2024) average.
- Yet, consumers still have elevated savings buffers. Median deposit levels remained well above their inflation adjusted 2019 levels in March for all income cohorts, according to Bank of America checking and savings data. While median deposits have declined since 2021, the rate of decline has slowed along with inflation growth.
- Consumers appear to be paring credit card debt. The share of households carrying a credit card balance has declined both YoY and compared to 2019 levels for all income groups, according to Bank of America credit card data. But a growing number of lower-income households are becoming more reliant on credit to maintain spending levels. If the labor market slows, some of these households may choose to further their reliance on credit or cut back discretionary spending altogether, in our view.
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