Bloomberg Talks BofA President of Retail Banking Holly O'Neill Talks Consumer Spending
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Dec 12, 2024 Holly O'Neill, President of Retail Banking at Bank of America, provides keen insights into consumer behavior as outlined in the latest consumer checkpoint report. She reveals strong household spending growth across all income levels, highlighting lower-income groups' resilience. The discussion also covers shifting trends towards discount stores and increased service and travel spending, alongside the influence of social media on purchasing. O'Neill emphasizes that consumers are more prepared to spend, even as they adapt their habits post-pandemic.
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Consumer Resilience and Spending
- Consumers show resilience with spending up in November across income levels.
- Holiday spending is also projected to increase by 7% to $2,100.
Value-Driven Spending
- Consumers are prioritizing value by switching to discount stores and benefiting from lower prices like gas.
- This behavior indicates smart spending choices rather than weakness, given strong liquidity and borrowing capacity.
Service Spending and Potential Shift
- Spending on services like travel and experiences remains robust.
- A potential rotation back to goods spending might occur as durable goods purchases from the pandemic mature.