The consumer has not run out of gas, says BofA’s Liz Everett Krisberg

Summary

Liz Everett Krisberg of the Bank of America Institute discusses the December Consumer Checkpoint, which showed a rebound in consumer spending after a soft November. She notes that spending growth was driven by transactions and smaller-ticket items, with general merchandise and clothing benefiting while big-ticket durables, furniture, electronics, and travel pulled back. She also highlights resilient payrolls and a persistent gap between higher- and lower-income consumers.

• Bank of America Institute December Consumer Checkpoint showed consumer spending rebounded after a chilly November.
• Credit card spending rose 1.8% year over year and 0.5% month over month seasonally adjusted.
• Consumers shifted toward smaller-ticket items; general merchandise and clothing benefited.
• Big-ticket durables, furniture, electronics, and travel spending pulled back.
• Payroll data showed more households receiving paychecks, while unemployment income growth was steady.
• Higher-income consumers spend much faster than lower-income consumers, with a consistent gap.
• The speaker frames the consumer as adapting rather than running out of gas.