Consumers are richer than they think they are, says BofA analysis

A pedestrian carries shopping bags in the SoHo neighborhood of New York, US in March 2023. (Credit: Angus Mordant—Bloomberg/Getty Images)

U.S. consumers could be forgiven for thinking they've rarely been more strapped for cash than in 2023: inflation is still high, the Fed has hiked up rates, and fiscal support from the government is beginning to run dry.

However, Bank of America's analysis paints a different picture, highlighting robust spending growth and relatively high household deposits compared to 2019.