BofA Sees 21.4% Gas Sales Spike, Cuts India GDP Forecast to 6.5%
Bank of America reports household card spending rose 4.7% year-over-year in the week ending March 28, driven by a 21.4% surge in gas station sales while furniture and department store transactions declined. The bank also reduced its India FY27 GDP forecast to 6.5% from 7%, lifting inflation projections to 5.2%.
1. Consumer Spending Trends
Bank of America data show total debit and credit card spending per household rose 4.7% year-over-year in the week ending March 28, driven primarily by a 21.4% increase in gas station purchases, reflecting elevated fuel costs.
2. Retail Sector Performance
During the same period, spending at furniture and department stores fell each day, while home improvement categories also saw declines, indicating shifting consumer priorities as energy prices surge.
3. BofA Revises India Forecast
Bank of America economists cut India’s fiscal year 2027 GDP growth forecast to 6.5% from 7% and raised the inflation outlook to 5.2%, warning of a 1–2 percentage-point downside risk if the Middle East conflict intensifies.