- People saved more than usual over the pandemic, due to stimulus payments increasing income and an initial drop in spending.
- Bank of America internal data indicates that some of the accumulated deposits are now being gradually drawn on, particularly among lower income households.
- But there is little evidence of a sharp rise in people living ‘paycheck to paycheck’ – only 12% of customers have account inflows 85% or less of their outflows. Provided the economic slowdown is gradual, we expect the accumulated buffers to continue to support consumers for a significant period.
Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: Home and away
Our data confirms the U.S. housing market is slowing, which may be a drag on discretionary spending, especially for renters.
Consumer Morsel: It takes two income groups to tango
While discretionary spending slows for high-income consumers, the story differs across expense categories.