Bank of America Institute’s latest research shows that U.S. consumers are still spending, but doing so in a more price‑conscious way, favoring smaller, better‑value purchases over big‑ticket items.
Key findings
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Total credit and debit card spending per household rose 1.8% year over year in December 2025, up from 1.3% in November, indicating continued but modest spending growth.
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Consumers gravitated toward smaller‑ticket discretionary items and were cautious on higher‑priced goods and services throughout 2025.
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Holiday spending was strong overall, but many shoppers pulled forward purchases into October and November and became more deal‑focused around Black Friday and early December.
Evidence of price consciousness
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Average transaction sizes in many categories changed little, with spending growth coming more from a higher number of transactions than from bigger baskets, suggesting shoppers are watching per‑purchase outlays.
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Bank of America card data indicate that consumers sought value, including more activity in value‑oriented retail segments and careful trade‑offs between categories.
Differences by income
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Overall 2025 card spending grew 2.4% year over year for higher‑income households, compared with just 0.4% for lower‑income households, indicating more constrained growth at the lower end.
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Lower‑income wage growth softened over 2025 but has recently stabilized, contributing to cautious but still positive spending among these households.
Outlook into 2026
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Bank of America notes that consumer finances remain generally healthy, with little sign of broad over‑reliance on credit cards or buy‑now‑pay‑later, even as price sensitivity stays elevated.
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Expected larger U.S. tax refunds in early 2026 could temporarily boost discretionary spending, potentially supporting retailers after a year in which shoppers focused on stretching each dollar.
