Credit and debit card spending by Americans continues to rise despite inflation, reports Bank of America

The Bank of America Institute published the results of the latest Consumer Checkpoint, whose objective is provide a real-time estimate of US consumer spending and financial well-beingleveraging data from its 67 million consumer and small business customers.

According to the information, Bank of America’s aggregate credit and debit card spending increased 9% on May 1 year over year; within this, credit card spending was up 16% year over year, while debit card spending was up 4%.

“Our card data shows continued growth in consumer spending, but inflation is challenging household purchasing powersaid David Tinsley, a senior economist at the Bank of America Institute.

“Having said that, spending on services such as travel and entertainment remained strong and households continued to have higher savings than before the pandemic. Overall, we remain cautiously optimistic for the US consumer,” Tinsley said.

Total payments growth across all channels increased 6% year-over-year in Mayfrom sources such as wire payments, automated clearinghouse (ACH), cards, bill pay, etc., while overall transaction volumes increased 8% year over year.

The Bank of America Institute notes that gasoline spending as a percentage of total card spending increased to 7.8% in the week ending May 28, compared to 6.4% in February; where low-income consumers (< $50k/year), had an average spending share on gas increased to 9.5%.

Per-household spending increases varied by region, with the South outperforming the rest of the country while the Midwest lagged behind year-over-year. For example, compared to the 4.3% year-over-year increase in average spending per household throughout May nationally, spending by Miami residents increased 6.8%while Chicagoans’ spending per household rose 1.4%.

To see the details of the report, go here.

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