BofA: Consumer spending rising in US due to travel

Thursday, 07. July 2022 17:53

Bank of America Corp. said on Thursday that consumer spending in the country continued to rise despite the soaring inflation. The bank noted that the aggregated credit and debit card spending was annually up by 11% in June, while consumer spending on travel and entertainment also increased despite the high gas prices due to a "pent-up demand."

"Consumers are in better shape to respond to a slowdown in the US economy than they have been in many previous business cycles," David Tinsley, Bank of America's senior economist explained, underlying that for the entire situation related to consumer momentum "we may need to wait until the summer is over."

President Joe Biden stated earlier that inflation is not "coming down as sharply and as quickly" as it should, while the Federal Reserve increased the pace of interest rate hikes to lower inflation.

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