# Flush with Stimulus Cash Consumers are Spending

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Last modified: 2021-06-06

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By Paul Ebeling · 2021-06-06
Tags: consumers, cash, Lifestyle, stimulus, spending, savings, Headline News, bac, Paul Ebeling, Shopping, Coronavirus
Signed: no (published before platform launch).
Nothing in this article is investment advice.

#consumers #cash #spending

#BAC

*“Our consumers have lots of money in their checking accounts,*” Brian Moynihan, BoA CEO B said Sunday on CBS’s “Face the Nation.” *“They have not spent about 65% to 75% of the last couple rounds of stimulus.”*

Spending by consumers at the 2nd-biggest U.S. bank exceeded $1-T so far this yr, up 20% over Y 2019, he said.

Domestic travel spending, such as car rentals and hotels for leisure trips, has increased, and consumers are shifting from buying food in the store to visiting sit-down restaurants, he said.

The US economy is projected to grow 7% this yr and 5.5% next yr, according to Bank of America’s research team.

Loans are* “starting to pick up,”* and there’s plenty of borrowing capacity because companies have unused credit lines, CEO Moynihan said. Loan growth has been a challenge across the banking industry because many consumers and businesses are sitting on cash from savings and stimulus during the VirusCasedemic.

In Q-1, Bank of America reported a decline in loans in the consumer banking unit. CEO Moynihan said then that the bank is *“highly focused”* on capturing loan growth during the economic recovery.

The Key risks to economic growth are supply chain and labor shortages, CEO Moynihan said. In a spring survey conducted by the bank, small businesses said their Top concerns were getting workers and supplies to match the demand. “*That’s something that’s straightening out, but will take a little time,*” he said.

Have a healthy week, Keep the Faith!

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