Most Spending Categories Have Recovered, Reports Brian Moynihan
After a difficult economic period in 2020, consumer confidence is steadily improving due to widespread vaccine distribution and government stimulus efforts. Recent data from Bank of America’s CEO, Brian Moynihan, shows that consumer spending has not only returned to pre-pandemic levels but has surpassed them.
Moynihan stated in an interview with CNBC that people have been spending the stimulus money they received, and with decreasing unemployment rates, more individuals are returning to work. This has led to increased spending on activities like visiting amusement parks, taking domestic trips, and dining out, as businesses begin to reopen.
Usage of credit and debit cards, as well as services such as Zelle, has risen by 20% compared to the same period in 2019, significantly higher than levels seen in 2020. The passing of President Biden’s stimulus package, alongside previous relief payments issued in 2020, has boosted savings for many individuals and helped prevent financial crises like loan defaults.
Consumer spending has surged 20% compared to 2019, reports Bank of America CEO Brian Moynihan Source
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Almost all major consumer spending categories, including food and entertainment, have experienced growth, except for travel, which remains down by 15%. Moynihan noted that bank accounts holding $1,000 to $2,000 have seen balances rise significantly, up to 6 to 7 times what they were before the pandemic.
“People are beginning to spend some of that saved money,” mentioned Moynihan. “While the funds remain available, individuals are taking opportunities to spend.”
