According to Bloomberg News, consumer clients of Bank of America Corp made $294 billion in total payments last month, up by 16% from what it was one year earlier, as the economy in the United States continues its recovery coronavirus pandemic.
The increased consumer spending
Customer spending increased by 21% in February on debit and credit cards from what it was a year earlier to $63 billion, with a considerable amount being spent for travel up by 95%, as stated by the North Carolina-based company Charlotte on Tuesday.
Restaurant spending was up by 38%, and spending on the gym was found to account for 43%, as more people stirred out of their homes, with the consumers belonging to Generation Z and the millennials responsible for driving growth.
According to Mary Hines Droesch, head of the consumer and small business products, it was found that there is a strong spending trend across different segments that include gym membership, public transportation, restaurants, and travel, suggestive of the fact that consumers have been returning to the office and engaging in more in-person activities.
Bloomberg News reports that there is increased spending at coffee shops, public transportation, and dry cleaners, implying a greater return to offices with infections from Covid plunging nationwide following the outbreak due to the omicron variant. When combined, these segments had an increase of 30%, which is more than what it was in January’s 21% gain compared to one year earlier.
As many as 67 million consumer clients operate with Bank of America. Although there is growth in spending, the balances of client deposits totaled beyond $1.4 trillion towards the end of February, up by 15% from what it was a year earlier, as stated by the lender.
