BofA: US Credit Card Spending Up 3.8% in February

Key Spending Highlights

Bank of America reported that aggregated US credit card spending increased by 3.8% year-over-year in February. This marks the ninth consecutive month of acceleration and represents the highest growth rate recorded since January 2023.

Detailed Spending Breakdown

The February figure is an increase from the 3.2% year-over-year growth seen in January. Total card spending per household rose 3.2% year-over-year, while debit card spending accelerated to 2.7%. Specific categories showed strength, with restaurant spending up 4.4% and travel spending increasing by 5.1% year-over-year.

Economic and Market Impact

The data highlights a growing divergence in spending between income groups. Higher-income households increased their credit card spending by 4.8% year-over-year. BofA notes these spending trends show a high correlation with transaction volumes reported by major networks like Visa, Mastercard, and American Express, suggesting broad strength in consumer activity.

Summary

The report indicates continued consumer resilience, particularly in the services sector and among higher-income demographics. This sustained spending acceleration offers a positive indicator for the broader US economy and consumer-focused companies heading into the new quarter.

FAQ

Q: What was the headline growth in US credit card spending for February?
A: According to Bank of America data, US credit card spending grew 3.8% year-over-year in February.

Q: Which spending categories performed well?
A: Travel spending grew by 5.1% and restaurant spending rose by 4.4% year-over-year.

Source: Investing.com