Bank of America’s consumer clients made $294 billion of total payments last month, up 16% from a year earlier, as the U.S. economy continued its recovery from the coronavirus pandemic.
Customer spending on credit and debit cards increased 21% in February from a year earlier to $63 billion, with outlays for travel up almost 95%, the Charlotte, North Carolina-based company said in a statement Tuesday. Restaurant and gym spending was up 38% and 43% respectively as more people got out of their homes, with millennials and Generation Z consumers driving growth.
“Strong spending trends across a variety of sectors such as travel, restaurants, public transportation and gym memberships suggest more consumers are returning to the office and resuming more in-person activities,” Mary Hines Droesch, head of consumer and small-business products, said in the statement.
The lender saw increased spending at coffee shops, dry cleaners and public transportation, indicating a greater return to offices as COVID-19 infections declined nationwide following the omicron-variant outbreak. Combined, the categories had a 30% increase in spending, more than January’s 21% gain from a year earlier.
Bank of America has about 67 million consumer clients. Even with the growth in spending, client deposit balances totaled more than $1.4 trillion at the end of February, up 15% from a year earlier, the lender said.
Other February payments data from Bank of America:
— In-person spending on movie theaters, ticket agencies and amusement parks by Gen Z and millennials soared 162%, far outpacing the 94% increase among baby boomers and seniors.
— Deposit-balance growth remained strong across all age demographics, the bank said. Millennials were up 61% on average in February, while boomers and seniors rose 38%.
— Digital spending on credit and debit cards increased 22%, while tap-to-pay also grew, representing 19% of in-person transactions.
