Broad-based retail spending strength persisted in September

Summary

• Broad-based retail spending strength persisted in September 2026 with nearly 86% of discretionary retail categories experiencing positive spending growth from a year ago.
• This breadth of growth represents the strongest level seen in more than five years, contrasting with the three years ending in September 2025 when an average of just 28% of categories saw spending growth.
• Categories experiencing positive spending growth account for over 94% of total retail spending.
• Online/non-store retailers & miscellaneous retailers continued to lead spending growth.
• Furniture & building materials remained softer spending spots, though other durable goods categories showed some strength.
• The "more discretionary" retail category includes furniture, electronics, building materials, hobbies, miscellaneous stores, nonstore retail, & clothing.
• The "partly discretionary" retail category includes auto, health & personal care, & general merchandise.
• The "mostly necessity" retail category includes gasoline, food, & beverage.
• Data is derived from aggregated & anonymized Bank of America transaction data including US Retail, Preferred, Small Business, & Wealth Management clients with deposit accounts or credit cards.
• Aggregated spend includes total credit card, debit card, ACH, wires, bill pay, business/peer-to-peer, cash, & checks.
• Small business payments data represents aggregate spend from Small Business clients with a deposit account or Small Business credit card, generally defined as under $5mm in annual sales revenue.
• Per household card spending growth isolates impacts from a changing sample size by including only households that complete at least five transactions with Bank of America cards in the month.
• Overall total card spending growth includes small business card spending while per household card spending does not.
• Household income terciles are based on quantitative estimates with the lowest tercile representing 'lower income', the middle tercile 'middle income', & the highest tercile 'higher income'.
• Generations are defined as Gen Z (born after 1995), Younger Millennials (born 1989-1995), Older Millennials (born 1978-1988), Gen Xers (born 1965-1977), Baby Boomers (born 1946-1964), & Traditionalists (pre-1946).
• Spending data is classified by subsector using Merchant Categorization Codes mapped to the North American Industry Classification System.
• The report was authored by Liz Everett Krisberg, Head of Bank of America Institute, & David Michael Tinsley, Senior Economist, Bank of America Institute.