Bank of America Data Shows Rising Lower-Income Spending, 122,000 May Jobs
BAC•Bank of America data shows the spending gap between upper- and lower-income households narrowed significantly over the past week, with poorer consumers' non-gas spending rising toward levels held by wealthier earners. After-tax wage growth improved for low- and middle-income workers, while ADP reported 122,000 private jobs added in May.
1. Spending Patterns Shift
Bank of America’s recent card data reveal that non-gas spending among lower-income households has climbed sharply over the past week, closing the gap with upper-income consumption levels established in March. This shift signals a potential end to the persistent K-shaped economic recovery that favored wealthier consumers since late 2024.
2. Wage Growth and Job Market
A Bank of America Institute report shows after-tax wage growth increased for low- and middle-income earners, though some gains may be tied to recent tax relief. Concurrently, ADP’s May report recorded 122,000 private-sector job additions, driven by broad-based hiring in leisure, hospitality, construction and manufacturing sectors.
