U.S. — Spending patterns among lower-income earners are increasing for goods and services, excluding gas, according to Bank of America. The institution also reported that the spending gap between upper and lower-income earners has decreased based on recent card data.

Bank of America stated that wealthier households' consumption levels have remained consistent since March 2026. The financial institution's data had shown a K-shaped economy, characterized by divergent economic outcomes for different income groups, since late 2024 and early 2025.

A Bank of America Institute report indicated a rise in after-tax wage growth for lower and middle-income households. Bank of America economist Shruti Mishra said the recent improvement could partly reflect tax relief.

The latest Bureau of Labor Statistics report showed an unemployment rate of 4.3%. ADP reported that private employers added 122,000 jobs in May. The New York Fed found that most industries experienced a synchronized decline in wage growth since October 2022, with public administration, mining, and construction sectors being exceptions.

"Recent data provide some tentative evidence of this, alongside an improvement in professional and business services hiring after job losses throughout '25, which disproportionately affected younger, lower-income workers," Mishra said. She also identified potential drivers for these trends.

"It is still too early to confirm a sustained shift, as the recent improvement could partly reflect tax relief, but the data bear watching," Mishra said. "Potential drivers could be reduced tariff uncertainty, ongoing equity market strength, and consequently robust higher-income spending," she said.

No independent assessment was available for this report.