Bank of America Says May Card Spending Rose 5% as Consumers Trade Down on Higher Gas
Updated
Updated · NBC News · Jun 14
Bank of America Says May Card Spending Rose 5% as Consumers Trade Down on Higher Gas
3 articles · Updated · NBC News · Jun 14
Summary
Bank of America’s internal card data showed May spending rose 5% from a year earlier, with customers still paying for vacations and dining out despite inflation pressure.
Brian Moynihan said shoppers are reshuffling budgets rather than pulling back broadly, citing a shift from premium pet food to cheaper brands to offset fuel costs.
Gas prices were about 40% above pre-war levels after the U.S. launched war against Iran, while inflation outpaced wage growth in May for a second straight month.
Moynihan warned sentiment remains weak even as spending holds up, saying the bigger risk is if consumer behavior starts matching pessimism about affordability.
On jobs and AI, he urged companies to keep hiring and retraining entry-level workers; Bank of America recently added 2,000 graduates, 2,000 interns and now pays at least $25 an hour.