Bank of America reports 6% jump in consumer spending with wage growth across all income groups

Bank of America’s consumer banking division reported a 6.3% jump in spending, powered by wage growth that’s hitting lower and middle-income households at rates not seen since early 2025.

The data, pulled from aggregated credit and debit card transactions plus deposit account activity, paints a picture of an economy where the rising tide is, for once, actually lifting most boats.

The numbers behind the spending surge

Total credit and debit card spending per household climbed 4.8% year-over-year in April 2026, according to the Bank of America Institute’s analysis. Strip out gasoline purchases, and the increase was a still-healthy 4.0%.

After-tax wage growth for lower-income households hit 3.1% year-over-year in May 2026. Middle-income households posted 3.5% growth over the same period. Both figures represent the strongest readings since January 2025.

Higher-income households still led the pack with 5.6% wage growth. But the gap is narrowing, and that’s the story worth paying attention to.

US GDP grew at a 2.1% annualized rate in Q1 2026, backed by Personal Consumption Expenditures that continue to be the economy’s workhorse.

Why crypto markets should be watching

When household balance sheets improve, risk appetite tends to follow. Crypto, for better or worse, remains firmly in the “risk-on” category for most retail investors.

BofA’s data specifically highlights wage growth as the driver, which suggests this isn’t a debt-fueled sugar rush.

What investors should watch next

The narrowing wage gap across income groups is arguably the most important trend in this data. Higher-income households tend to save or invest marginal dollars. Lower-income households tend to spend them. That means broader wage growth translates more directly into economic activity, corporate revenue, and ultimately market performance.

It’s worth noting that BofA’s own research makes zero mention of digital assets. The bank has historically been cautious in its crypto commentary.

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