Consumer resilience has powered the U.S. economy so far this year. Is it beginning to show cracks — or will it hold up?
Insights by Marci McGregor, head of Portfolio Strategy for the Chief Investment Office for Merrill and Bank of America Private Bank, and Liz Everett Krisberg, head of the Bank of America Institute
AMERICAN CONSUMERS GET GOLD STARS for resilience this year. Despite rising inflation and concerns about the potential impact of AI on their jobs, they’ve kept spending. And while it’s true that upper-income households are reaching for their wallets more than those in the middle- and lower-income ranks, that K-shaped gap has begun to narrow, reports Liz Everett Krisberg, head of the Bank of America Institute, which tracks data across the economy. “And that’s good news,” she adds. After all, consumer spending accounts for nearly 70% of the U.S. economy,1 helping to power corporate earnings and boost market performance.
In the video above, Krisberg takes viewers inside the American wallet, revealing what consumers are purchasing (and cutting back on); where some are getting shopping advice (AI, anyone?); and why they feel confident about spending. Leading the conversation, Head of Portfolio Strategy Marci McGregor pressure tests the consumer resilience that has buoyed markets and highlights risks to watch as you monitor the markets and manage your portfolio.
For more insights on the markets at midyear, watch the Midyear 2026 Outlook webcast “Shifting gears: New drivers of potential market expansion” and read “Midyear 2026: The pace of change accelerates.” Visit the Bank of America Institute regularly to explore its latest findings on trends reflecting the health of the consumer and the state of the economy.
1Investopedia, “Unveiling key trends in American spending habits,” March 7, 2026.
The opinions expressed are as of 6/10/26 and are subject to change.
Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.
Bank of America Institute is a think tank dedicated to uncovering powerful insights that move business and society forward. Drawing on data and resources from access the bank and the world, the Institute delivers important, original perspectives on the economy, sustainability and global transformation. Any materials indicated as prepared by Bank of America Institute are solely those of Bank of America Institute, and are not the product of the BofA Global Research department, Merrill or any other department of Bank of America Corporation or its affiliates and/or subsidiaries (collectively Bank of America).
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).
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