Blog: Publication explores consumer spending growth pace – Financial Regulation News – Financial Regulation News

A publication recently released by the Bank of America Institute, a Bank of America think tank, maintains October’s overall consumer spending increased, but at a slower pace than prior months.

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“Our internal data illustrates that the consumer still has forward momentum, though holiday spending looks a little tepid right now,” Bank of America Institute Senior Economist David Tinsley said regarding the Consumer Checkpoint publication’s findings. “A rebound in auto supply has the potential to mean car purchases could partially offset an overall slowdown in discretionary spending.”

Officials indicated the Consumer Checkpoint data stems from 67 million consumer and small business clients; 54 million verified digital users; $3.8 trillion in total payments in 2021, and $1.4 trillion in consumer and wealth management deposits.

Per the Consumer Checkpoint report, middle and higher-income households — identified as those between $50,000 and $125,000, as well as those greater than $125,000, respectively — have replaced lower-income households as the main growth driver of discretionary spending.

Regarding October 2022, the publication indicated the lower-income group contributed one-fifth of the growth in discretionary spending compared to two-fifths in October 2021.

The Consumer Checkpoint publication seeks to provide a holistic and real-time estimate of domestic consumers’ spending and their financial well-being. It is not intended to reflect or indicate Bank of America operations, financial conditions, or performance results.

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