Consumer spending is 'soft but stable': Economist

According to a Bank of America report, total card spending in American households witnessed a 1% year-over-year increase in April, surpassing the 0.3% growth observed in March. To shed light on this consumer spending trend, Bank of America Institute Senior Economist David Tinsley joins Wealth!
Tinsley characterizes the consumer spending momentum as "soft but stable." Notably, he highlights that low-income consumers continue to spend actively despite the inflationary environment, sometimes even outpacing higher-income consumers- saying this is due to the "labor market story".
He emphasizes that at the lower end of the wage and salary spectrum, growth remains robust at around 4% year-over-year. "The labor market has been very beneficial to the lower end over the last few years," Tinsley says, potentially fueling the continued spending.
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: / yahoofinance
Instagram: yahoofinanc...
TikTok: www.tiktok.com/@yahoofinance?...
Facebook: / yahoofinance
LinkedIn: / yahoo-finance

[@charlielima247]

Is this adjusted for inflation i.e. real growth? If not that would suggest we are spending a little bit more for less.

[@BuyLessJess]

Poverty demands a good time.

[@B_knows_A_R_D-xh5lo]

😀💵

[@unknownhound123]

It’s absolutely great for economy especially for uplifting of great entrepreneurs. Credit system is definitely a blessing for us in the USA 🇺🇸 !!!