How are middle-income consumers doing?
While this cohort’s spending lagged the average over the pandemic, there are signs of a catch-up at the start of 2023.
- Bank of America credit and debit card spending per household by middle-income consumers lagged the average over the pandemic. Their discretionary spending was particularly soft, with limited access to service sector activities as one explanation.
- However, there are signs of a catch-up at the start of 2023, with middle-income services spending looking fairly solid — and perhaps enjoying a good meal out once more.
- Can this persist? Well, the Bank of America Propriety Market Landscape Insights Study suggests middle-income consumers feel fairly confident near-term and still have financial buffers to draw on should economic headwinds start to blow harder.
Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: No madness in March spending
While spending was no slam dunk due to weaker wage growth and lower tax refunds, consumers continue to have financial buffers.