Consumers hold steady despite rising energy prices, job jitters, BofA says
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American consumers are holding it together despite surging energy prices, concerns about the job market and stock market volatility, according to Bank of America executives.
Why it matters: As one of the largest banks in the country, BofA has a direct line of sight into the financial health of consumers.
The big picture: In a call with reporters Wednesday morning, BofA CFO Alastair Borthwick said, "Our data continues to tell us that the American consumer remains resilient."
- Noting that the labor market remains steady, with unemployment currently at 4.3%, BofA CEO Brian Moynihan told CNBC that "as long as that's true, the general economy, the general consumer will be in good shape."
- On the company's earnings call, he described the economy as "resilient ... even with all the uncertainty that you've all written about out there."
By the numbers: BofA customers spent 6% more via credit and debit cards in the first quarter than they did in the same period a year earlier, Moynihan said on the call.
- That included an increase in spending on discretionary categories like entertainment and travel, Moynihan noted, reflecting a degree of confidence in their financial standing.
- "We're in a period right now where unemployment is good. Home prices are good. Asset prices are good. Savings remain elevated," Borthwick told analysts.
Yes, but: Gasoline prices remain at a high for the year after the Iran war spiked oil prices.
- The national average per gallon was $4.11 nationally today, according to AAA.
- That's up from $3.70 a month ago and $3.17 at this point in 2025.
The bottom line: Consumers aren't letting the energy prices get them down... yet.
