Read our full analysis for a more in-depth look at these trends.
Consumer Checkpoint: Gains and gaps
Consumer spending increased again in July, but a gap is widening between lower- and higher-income households.
August 2025
Key takeaways
- Total credit and debit card spending per household increased 1.8% year-over-year (YoY) in July, the highest growth rate since January, according to Bank of America aggregated card data. Seasonally adjusted (SA) spending per household rose by 0.6% month-over-month (MoM), after a 0.4% MoM rise in June.
- Will this forward momentum continue? An improvement in consumer discretionary spending is encouraging, but the data also reflected some temporary boosts, such as online retail promotions and back-to-school spending.
- A widening gap has opened up between the wages and spending growth of lower-income households and other cohorts. Lower-income households saw a deceleration in their after-tax wages growth in July to just 1.3% YoY, while higher-income households saw an acceleration to 3.2% YoY.
- Overall, consumers remain in good financial health, with elevated deposits and continued borrowing capacity. There are, however, a few signs of stress for lower-income households.
Consumer Checkpoint is a regular publication from Bank of America Institute. It aims to provide a holistic and real-time estimate of U.S. consumers’ spending and their financial well-being, leveraging the depth and breadth of Bank of America proprietary data. Any such Bank of America proprietary 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.
Additional Materials:
Get the latest from Bank of America
Institute delivered right to your inbox.
