December 2024
Are young professionals spending more?
A rise in the spending growth of higher-income households may partially reflect the momentum and outlook of younger generations.
Key takeaways
- The acceleration in higher-income spending growth seen in Bank of America aggregated credit and debit card data in 2024 has been accompanied by an acceleration in higher-income households' after-tax wages and salaries growth in 2024 compared to 2023. Consumer sentiment amongst higher-income households has also risen by more than other households, according to the University of Michigan sentiment survey.
- This acceleration in spending growth appears to partly reflect faster growth in the spending of higher-income younger generations (Millennials and Gen Z), and they may be using a strengthening in after-tax wage growth to increase spending on discretionary items.
- Findings from a recent Bank of America survey of young professionals are consistent with this picture. Young professionals are more upbeat on the economy over the next 12 months, and a large proportion of them have seen a salary increase over the last year.
Read our full analysis for a more in-depth look at these trends.
