For the past year-plus, the US economy has operated like a two-speed machine. Wealthier Americans kept spending with abandon while lower-income households pulled back, creating a K-shaped split. Bank of America now says that split is closing.
The bank’s research arm, the Bank of America Institute, published its August 2026 Consumer Checkpoint report with a title that does most of the heavy lifting: “The Great Convergence.” The core finding is that lower- and middle-income households are experiencing faster spending growth than their higher-income peers, reversing a trend that had persisted for more than a year.
The numbers behind the narrowing
Bank of America’s analysis draws on its massive trove of actual credit and debit card transaction data. In July 2026, overall card spending grew 5.0% year-over-year, down from the 6.3% growth recorded in June.
Strip out gasoline purchases and spending growth came in at 4.3% year-over-year for July.
