FEBRUARY 11, 2026 AT 11:57 AM
Bank of America (BAC) Consumer Checkpoint says consumer spending showed solid resilience in January, with total card spending +2.6% Y/Y, strongest in nearly two years, despite weather‑related disruptions
Importance
Level 1
- Income‑based divergence in spending and wage growth persists, BofA said, and it said it was concerned that a “K” shape is opening up between higher-income households and middle-income households, alongside the existing gap with lower-income households.
- BofA says households remain adaptive and financially stable overall in the face of significant affordability challenges, supported by trading‑down behaviours, elevated savings and “dry powder” to borrow.
- Moreover, BofA thinks higher tax refunds may provide a significant support for consumers.