Wage Growth Concentrated Among Higher-Income Households in April
Higher-income households saw after-tax wage growth of 6 percent year-over-year in April while lower-income households experienced only 1.5 percent growth that barely offset rising gas costs, according to Bank of America Institute data. Overall consumer credit and debit card spending rose 4.8 percent year-over-year, the strongest monthly gain in three years.
themandarin.com.auWage growth in April was increasingly concentrated among wealthier households, according to Bank of America Institute data. After-tax wages for higher-income households rose 6 percent year-over-year. Lower-income households saw wage growth of 1.5 percent year-over-year.
Credit and debit card spending overall rose 4.8 percent year-over-year in April, marking the strongest monthly gain in three years.
The Bank of America Institute tracks both wage trends and actual card spending. Liz Everett Krisberg, head of research at the institute, said the April credit and debit card spending figures reflected these patterns. Higher-income households continued to drive much of the spending growth. The institute has flagged similar dynamics in prior monthly reports.
Key Facts
Story Timeline
3 events- May 12 2026
Bank of America Institute releases April Consumer Checkpoint Report showing wage and spending trends.
2 sourcesBank of America Institute · CNBC - April 2026
Higher-income after-tax wage growth reaches 6% YoY while lower-income reaches 1.5% YoY.
2 sourcesBank of America Institute · CNBC - April 2026
Credit and debit card spending rises 4.8% YoY, strongest monthly gain in three years.
2 sourcesBank of America Institute · CNBC
Potential Impact
- 01
Policymakers receive fresh data highlighting uneven wage recovery across income levels.
- 02
Lower-income households face reduced discretionary spending capacity due to gas cost pressures.
- 03
Retailers serving middle- and lower-income customers may see slower sales growth.
- 04
Consumer credit metrics could diverge further if wage trends persist into Q3.
Transparency Panel
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