Bank of America (NYSE: BAC) overall credit and debit card spending rose 11% year-on-year in June, with credit card spending up 16% and debit card spending up +6%, the Bank of America Institute.
In comparison, the June reading has gained momentum from +9% YoY in May as historically high consumer price inflation persists.
Average gas spending as a percentage of total card spending per household rose to 9.8% in June for households with incomes below $50,000, from 7.7% in February. The increase comes as gasoline prices continue to weigh on consumers, although pent-up demand is boosting their spending on services such as travel and entertainment, the BofA Institute said.
“Consumers are in better shape to react to a slowing U.S. economy than they have been in many previous business cycles,” said David Tinsley, senior economist at the Bank of America Institute. “But with some slowing in services spending, we may have to wait until late summer to get a clearer picture of the strength of the underlying consumer momentum.”
Separately, non-automotive retail consumer spending in June was up 9.5% from a year ago, according to Mastercard (NYSE: MA) SpendingPulse, which measures in-store and online retail sales for all payment methods.
Retail sales excluding autos and gasoline rose 6.1% year-on-year in June amid rising prices, especially for essentials like food and fuel.
“Sector by sector, we see a mixed picture of the impact of inflation on core consumer spending versus discretionary consumer spending,” said Steve Sadove, senior adviser for Mastercard. “A notable highlight is that travel sectors such as airlines and accommodations continue to show signs of strong demand.”
Earlier (June 30), consumer spending grew less than expected in May.