Bank of America Data Shows Consumer Spending Resilient Despite 16% March Gas Price Spike

Bank of America revealed in an April 2026 data release that its customers’ spending on gasoline surged 16% in March, a direct consequence of rising global oil prices linked to conflict in the Middle East. Despite the sharp increase at the pump, which has raised concerns among economists about a potential consumer pullback, the bank’s data showed that discretionary spending on items like retail, travel, and entertainment remained unexpectedly strong through the first quarter of the year. The analysis, detailed in the Bank of America Institute’s April 10 “Consumer Checkpoint” report, showed that total credit and debit card spending per household increased 4.3% year-over-year in March. This marked the most robust growth rate since early 2023. Even when the volatile gasoline category was excluded, spending still posted a healthy 3.6% year-over-year gain, indicating that the surge in fuel costs had not yet prompted widespread cutbacks in other areas. Month-over-month, spending at the pump jumped 16.5%. While the top-line numbers suggest consumer strength, business owners should look closer at the underlying trends. We've seen that when household budgets get squeezed by necessities like fuel, the first cuts often come from small, local businesses rather than large subscription services or pre-booked travel. This data shows a potential vulnerability, especially for businesses serving lower- and middle-income customers who feel the pinch most acutely. The report highlighted a significant divergence in spending patterns across different income levels. Spending growth among higher-income households continued to substantially outpace that of middle- and lower-income groups. While the overall gap between these cohorts narrowed slightly in March, the report noted this was primarily a statistical effect of gasoline consuming a larger share of lower-income budgets. Critically, the data showed that discretionary spending growth for lower-income households actually eased during the month, suggesting they were beginning to make trade-offs that were not yet visible in the aggregate national figures. This trend was corroborated by data from other financial firms. Chime Financial Inc. reported that its clients spent 25% more on fuel in March compared to February. Chime CEO Chris Britt stated earlier in April that the rising cost is “definitely something consumers are feeling a real pinch in.” Despite these pressures, Bank of America Chief Financial Officer Alastair Borthwick said on a conference call that for now, the increase in gas spending “hasn’t changed the underlying strength consumers are exhibiting.” As evidence, BofA’s data showed that spending on entertainment grew by 12% in the first quarter. The BofA Institute report also examined sectors considered particularly vulnerable to high fuel prices, such as the automotive industry. However, it found that consumers did not appear to be pulling back on auto-related purchases, with sales remaining solid through March. The report provided context for this resilience, noting that the current price of gasoline, when adjusted for inflation, remains below the peaks seen in the periods following the global financial crisis and the pandemic. The divergence in spending between income brackets is a critical signal for businesses. It's not enough to see a healthy national average; companies need to understand their specific customer base. For businesses reliant on foot traffic and impulse buys, a sustained period of high gas prices can erode margins even if it doesn't trigger a full-blown recession. This is where proactive financial risk management becomes essential. Companies should be stress-testing their cash flow scenarios now, not waiting for a confirmed downturn. At C&S Finance Group LLC at csfinancegroup.com, we help clients build these financial models to identify vulnerabilities in their supply chains and customer demand before they become critical problems. The recent fuel shock has been significant. According to AAA data, the national average for regular gasoline has remained above $4 a gallon for two consecutive weeks, following the largest single-month price jump in two decades. This sustained pressure on household budgets is what has Wall Street analysts and business owners on high alert for signs of a broader economic slowdown. Moving forward, economists and business operators will be closely watching consumer spending data for April and May. These figures will be critical in determining whether the resilience seen in the first quarter can be sustained amid ongoing energy price pressure. The key question is whether consumers will begin to deplete savings or increase debt to maintain their spending habits, or if a delayed but significant pullback in discretionary categories is imminent.