Bank of America: Spending up in 2019
“When you look at what they spend year-to-date, they spent more in 2020 than they did in 2019, and that’s now $2.7 trillion in money moved by our consumers,” Moynihan said. . CNBC.
Quick spending aside, Moynihan also said more stimulus money is needed to help those out of work and support the survival of small businesses. Negotiations on Capitol Hill have yet to result in a new package.
Despite a record number of new coronavirus cases across the country and a growing death toll, people are also saving more and shopping with debit cards instead of credit. Moreover, the banks did not have to use the billions set aside for early defaults.
“Last May, you could see it flattening out and starting to grow,” Moynahan said. “Now it has really grown every month since then. November is up about 4% from last November, and December is up double digits so far.”
Buoyant December spending was propelled by reduced holiday shopping in November due to new restrictions on indoor shopping and dining, he added.
The financial situation of households and businesses has been helped in part by government stimulus funds provided through direct funds, pandemic unemployment and Paycheck Protection Program (PPP) loans.
Boa said in October consumer spending rose about 10% and loan delinquencies were down.
The nation’s second-largest bank reported third-quarter net profit of $4.9 billion, up from $5.8 billion last year, but up from $3.5 billion in the second quarter .