Bigger tax refunds could give consumers boost after year of 'resiliency and adaptability'
KOMO • • business
Key Points:
- Bank of America economists highlight strong consumer resilience in 2025, with solid momentum expected to continue into 2026, supported by a robust holiday shopping season and potential boosts from larger tax refunds.
- December 2025 saw a 1.8% increase in total credit and debit card spending per household year-over-year, with holiday spending up 4.7%, driven mainly by lower-priced retail and service sectors rather than luxury categories.
- Wage growth favored higher-income earners, who saw a 3% after-tax increase compared to 1.1% for lower-income households, though the income gap did not widen significantly; higher earners also increased spending faster than lower earners.
- The "K-shaped" economy persists, where
