BofA Data Shows Diverging US Consumer Spending in April

Key Moments

Bank of America reports total card spending per household increased 4.8% year-over-year in April and 0.6% month-over-month on a seasonally adjusted basis.
Category performance was uneven, with higher gas spending and solid online retail offset by declines at department stores, home improvement chains, airlines, and clothing retailers.
Bank of America estimates a roughly $25 billion hit to consumers from higher gas prices, partially offset by about $50 billion in increased tax refunds year-over-year.

Headline Spending Trends

Bank of America card data indicated that overall household spending continued to grow in April. Total card outlays per household were up 4.8% compared with the same month a year earlier. On a month-over-month, seasonally adjusted basis, spending rose 0.6%.

Category Performance: Strength and Weakness

Spending patterns across categories were uneven during the month. Gasoline expenditures moved higher, a shift the data linked to rising prices at the pump. Online retail activity remained strong, suggesting continued demand in that channel.

In contrast, several discretionary categories retrenched. Department stores, home improvement retailers, airlines, and clothing stores all saw spending decline, giving back gains recorded in March.

Category	April Trend
Total spending per household	+4.8% year-over-year; +0.6% month-over-month (seasonally adjusted)
Gas spending	Increased, driven by higher prices
Online retail	Remained solid
Department stores	Declined, reversing March gains
Home improvement retailers	Declined, reversing March gains
Airlines	Declined, reversing March gains
Clothing stores	Declined, reversing March gains

Retail Sales Outlook and Control Group

Bank of America projects that April retail sales excluding autos will climb 0.4% on a month-over-month basis. The same 0.4% monthly gain is expected for the so-called control group, which strips out autos, gas, building materials, and restaurants. These forecasts are described as slightly below consensus expectations.

Impact of Gas Prices and Fiscal Support

The bank estimates that the recent surge in gasoline prices has imposed an aggregate cost of about $25 billion on consumers. Even so, overall credit and debit card spending in March and April held up well, including when gas purchases are excluded.

This resilience is linked largely to fiscal support associated with the OBBBA, as tax refunds are reported to be approximately $50 billion higher than a year earlier. With Tax Day now behind, that source of support is diminishing, and the report notes that, absent relief at the pump, the drag from higher gas prices could become more significant for consumers in the coming months.

Income Segmentation and Non-Discretionary Outlays

Non-discretionary expenditures rose sharply among lower-income households in both March and April. The divergence between higher-income and lower-income spending growth is even more pronounced when focusing on spending that excludes gas or other discretionary categories.