Bank of America (BAC) Consumer Checkpoint: Consumer continues to show modest forward momentum; aggregate Bank of America credit and debit card spending per household -0.9% Y/Y in September (prev. +0.9% M/M)
- "Homeowners currently have a historically large share of equity in their homes, providing potential upside to spending if they tap this through a home equity line of credit (HELOC)".
- "But home equity is not evenly distributed and a significant share of HELOC borrowing appears on our estimates associated with debt consolidation, so the impact on spending should not be exaggerated".
- "Durable goods spending has been robust, according to Bureau of Economic Analysis data. However, we find the share of highervalue durable transactions in Bank of America internal data has declined, with a corresponding rise in some services categories".
- "This suggests consumers may be prioritizing value categories and experiences over big-ticket purchases".
10 Oct 2024 - 12:36- EquitiesEconomic Commentary- Source: Bank of America
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