Overview of Credit Card Spending#
Bank of America (BofA) has reported that credit card spending in the US grew by 3.8% year-over-year in February. This marks the ninth consecutive month of growth and the highest rate since January 2023. The increase is notable compared to January's growth of 3.2%.
Monthly Trends#
However, when looking at month-over-month data, credit card spending saw a decline of 5.4% in February, which is slightly worse than typical seasonal patterns. Higher-income households experienced a smaller month-over-month decrease of 5.1%, indicating they are spending somewhat more consistently than the overall trend.
Household Spending Insights#
On average, total card spending per household rose by 3.2% year-over-year in February. Additionally, debit card spending also saw an increase, rising to 2.7% year-over-year from 2.2% in January. This suggests that consumers are using both credit and debit cards more frequently.
Spending by Income Groups#
BofA's data indicates that credit card spending among higher-income households grew by 4.8% year-over-year in February, up from 3.4% in January. This highlights a growing gap in spending habits between higher-income and lower-income groups, especially in discretionary spending areas.
Sector-Specific Spending#
In terms of specific sectors, restaurant spending increased by 4.4% year-over-year in February, while travel spending rose by 5.1%, both showing improvement from January's figures. Conversely, entertainment spending saw a decline of 0.5% year-over-year, a significant drop from the 10.2% growth recorded in January.