BAC · News · 20260817N

Consumer Spending Performance

BANK OF AMERICA CORP /DE/ · 2026-08-17 · Importance 17 · Surprise 24

Bank of America data indicates that the wealthiest 5% of U.S. households are currently driving consumer spending growth, supported by rising equity prices and the resulting wealth effect. Their spending is outpacing wage growth, particularly in discretionary categories such as airline travel and clothing. Lower- and middle-income households are also showing improvement as stronger after-tax wage growth supports a broader convergence in spending patterns.

Key facts

• Mike Joo was formerly co-head of global investment banking at Bank of America and will join Barclays in early 2027 with his co-CEO role beginning in February 2027, pending regulatory approval. source
• Bank of America is changing its flexible work policy by eliminating the option for employees to work remotely on consecutive days, and the new policy is being implemented nationwide. source
• Bank of America data indicates that the S&P 500's significant year-over-year increase has disproportionately benefited higher-income households, enabling them to spend more on discretionary items like airlines and clothing. source