LIVE MARKETS-BofA says younger consumers are spending more but higher gas prices could bite
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BOFA SAYS YOUNGER CONSUMERS ARE SPENDING MORE BUT HIGHER GAS PRICES COULD BITE
Spending growth among Gen Z and Millennials has improved over the past year and outpaced older generations as of February 2026, though a conflict-linked oil shock that lifted U.S. gas prices leaves younger consumers more exposed, the Bank of America Institute said.
Gen Z spending growth overtook Baby Boomers in mid-2025 after nearly trailing for two years, BofA said, citing its credit and debit card data.
Easing rent pressures and slower inflation helped them ramp up spending on discretionary items over the past year, with more spending on clothing, travel, restaurants and electronics, BofA said.
Brent crude prices have surged nearly 39% since the Iran war erupted, and if oil prices remain elevated for a longer time frame, some of the categories where the younger generation has increased spending could come under pressure, BofA said.
BofA added that Gen Z's gasoline spending as a share of the total card spending has remained high and steady, while Millennials' share has exceeded that of Gen X or Baby Boomers.
BofA also warned that the labor market poses an additional risk for the younger cohort.
Job growth in the country has virtually stalled with recent college graduates experiencing long durations of unemployment.
(Avinash P)
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