Bank of America Says US Spending Gap Narrows as July Card Growth Slows to 5.0%
Updated
Updated · Crypto Briefing · Aug 21
Bank of America Says US Spending Gap Narrows as July Card Growth Slows to 5.0%
1 articles · Updated · Crypto Briefing · Aug 21
Summary
Lower- and middle-income households posted faster spending growth than higher earners in July, giving Bank of America its clearest signal yet that the US K-shaped economy is converging.
5.0% year-over-year card spending growth in July—down from 6.3% in June—showed the catch-up is happening even as overall consumer spending momentum cools; excluding gasoline, growth was 4.3%.
Bank of America tied the shift to stronger household finances, citing a rising share of consumers paying off credit card balances in full each month rather than leaning on revolving debt.
The top 5% of earners still spend at elevated levels, helped by strong balance sheets and asset gains, but the gap with lower-income groups has stopped widening after more than a year.
The August Consumer Checkpoint report, dubbed 'The Great Convergence,' builds on tentative signs seen since mid-2025 and suggests a broader, more durable consumer recovery.