Bank of America Card Data Shows Lower-Income Spending Rising While Upper-Income Spending Holds Steady

Bank of America card data over the past week shows the gap in spending between upper- and lower-income earners has closed significantly. Wealthier households’ consumption is holding at the same level established in March 2025. Poorer consumers are beginning to spend more on goods and services excluding gas.

The K-shaped economy has been persistent in Bank of America data since late 2024 and early 2025. Bank of America’s Shruti Mishra said a recent Bank of America Institute report showed a rise in after-tax wage growth for lower- and middle-income households.

“It is still too early to confirm a sustained shift, as the recent improvement could partly reflect tax relief, but the data bear watching,” Mishra said.

U.S. and Iran have agreed to a deal to cease military conflict in the Middle East. The two sides abruptly called off talks on the morning of the article’s publication. Crude oil prices reached a little over $113 a barrel at the height of the geopolitical tension and sit at $79 a barrel at the time of writing, having dropped steeply in the past week.

3% according to the latest Bureau of Labor Statistics report. ADP reported private employers added 122,000 jobs in May. “Hiring was more broad-based in May than we’ve seen in the last few years.

The labor market continues to show sustained momentum going into the summer hiring season,” Dr. Nela Richardson, ADP’s chief economist, said. Mishra noted that if the narrowing of the K-shaped spending pattern is sustained, one explanation could be job growth broadening into more blue-collar sectors such as leisure and hospitality, construction and manufacturing.