Hardware Retailing The Industry's Source for Insights and Information
Bank of America Institute research released last week found that overall, consumers were price conscious last year. When making discretionary purchases, they favored smaller-ticket items rather than more expensive goods and services. An expected increase in tax refunds in 2026 could impact discretionary spending.
Total credit and debit card spending per household rose 1.8% year-over-year in December 2025, according to Bank of America aggregated card data, up from 1.3% YOY in November. Seasonally-adjusted spending growth rose 0.5% month-over-month. Overall card spending rose 2.4% YOY for higher-income households and 0.4% for lower-income households. Lower-income wage growth softened in 2025, though it appears to have stabilized for now.
Looking at the overall holiday season, spending growth was strong, despite losing a little momentum around Thanksgiving and early December, suggesting that consumers shopped early, according to the Consumer Checkpoint report. Bank of America card data shows spending on holiday items increased 4.7% YOY.
