Bank of America’s aggregated credit and debit card dataset shows a modest rebound in card spending per household through mid-late 2025, but the gains are uneven across generations. Older, higher-income households accounted for the bulk of recent growth, while younger cohorts have exhibited weaker spending momentum, a dynamic that matters for consumer-facing companies and macro forecasters alike.

Generational Patterns: Who’s Spending and Where

Bank of America’s Consumer Checkpoint releases indicate Baby Boomers and Traditionalists recorded year-over-year spending growth near or above 2%–2.4% in recent months, driven by services categories such as restaurants, lodging and travel. By contrast, Gen Z and Millennials show more muted growth—often under 1% YoY—due to housing and debt-service pressures that reduce discretionary card usage. Gen X remains the highest in outstanding credit card balances while posting the weakest spending growth, highlighting the strain on middle-aged consumers balancing debt, inflation, and stagnant income growth.

Financial and Credit-Risk Implications

The generational divergence affects both payment volumes and credit risk profiles. Older cohorts’ sustained spending supports transaction volumes for card issuers and payment networks, benefiting sectors tied to travel and services. Meanwhile, Gen X’s higher leverage combined with slower spending growth heightens concerns about future delinquencies, especially if wage gains moderate or borrowing costs rise again. For lenders and risk managers, cohort-specific credit modeling is becoming increasingly relevant as aggregate data mask rising pockets of consumer stress.

Market Reaction and Strategic Takeaways

Markets view the card-spending data as a signal of continued consumer resilience rather than a catalyst for shifts in monetary policy expectations. Retailers, travel operators, and hospitality firms are positioning for stronger services spending into the holiday period, supported by the spending patterns identified by BofA. From a strategy perspective, younger consumers’ preference for debit and BNPL options suggests merchants may need to adapt pricing, loyalty rewards and financing products to sustain conversion, while older cohorts continue to drive higher-ticket credit-based purchases.

Looking ahead, wage trends among younger cohorts, revolving balance growth, and holiday-season performance will be key indicators for consumer strength in early 2026. If services momentum persists and employment conditions remain stable, aggregate card volumes could continue to strengthen. However, any deterioration in Gen X income or an uptick in delinquencies may tighten credit conditions, affecting sectors reliant on discretionary spending. Cohort-level spending data will remain a valuable signal for monitoring demand, credit risk, and sector rotation.