Bank of America Payments and Spending Data shows Consumers are not Wilting in the Summer Heat
Total payments increased 7% year over year in July; Consumers feel relief from lowering gas prices but many are feeling squeezed from rising rents
The Bank of America Institute published a new article today which shows consumer spending continues to increase in July but some consumers are feeling the effects of rising rents. Bank of America internal data suggest median rent payments increased by 7.4% year-over-year in July. That said, there are many reasons to remain positive about the steady resilience of US consumers: lower gas prices provided some relief to consumers in July, and promotional events from retailers boosted spending on goods. Additionally, households’ deposit and savings balances remain elevated and consumers have not yet shown signs of increased borrowing.
Highlights of the publication:
“Our internal spending and payments data suggests consumers are not wilting in this summer heat,” said Anna Zhou, economist for the Bank of America Institute. “While wallets are getting squeezed for the 34% of US households who are renters, relief from lower gas prices and retail promotions encouraged consumers to continue to spend throughout July.”
Consumer Checkpoint is a regular publication from the Bank of America Institute. It aims to provide a holistic and real-time estimate of US consumers’ spending and their financial well-being, leveraging the depth and breadth of Bank of America proprietary data. Such 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.
See the Consumer Checkpoint for methodology and definitions.
The Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, Environmental, Social and Governance (ESG), and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from 67 million consumer and small business clients, 54 million verified digital users, $3.8T in total payments in 2021 and $1.4T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
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