Consumer Spending is On the Rise Once Again

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According to Brian Moynihan, nearly all major categories of spending have recovered.

After the economic dead zone that was 2020, consumer confidence is gradually restoring thanks to the proliferation of vaccines and stimulus money. Consumer spending has not only already reached pre-pandemic levels, but even exceeded it, according to new statistics from Bank of America CEO, Brian Moynihan.

“People got a lot of stimulus money and they’ve been spending it,” Moynihan told CNBC. “The unemployment rate is coming down and people are going back to work. People can go to amusement parks, they can go on an inside-the-U.S. trip, they can go out to eat. You’re seeing everything open.”

Payments through credit and debit cards, as well as services like Zelle, are up by 20% compared to this time in 2019 (and obviously well over what they were in 2020). With the passage of President Joe Biden’s stimulus bill, as well as the other stimulus checks sent out during 2020, more people have had more money saved up, and have also avoided certain financial hardships like loan defaults.

Nearly all major categories of consumer spending are on the rise, from food to entertainment and more. The only exception is travel, which is still down by 15%. According to Moynihan, bank accounts with balances ranging from $1,000 to $2,000 are “up 6 to 7 times what they were before the pandemic.”

“They’re starting to spend a little of that money,” Moynihan said. “The money’s still there and they’re spending as they have opportunities.”

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1 year ago
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