Bank of America Corp. has reported that consumer spending growth has slowed, except for Taylor Swift’s fans traveling to Europe for her Eras Tour. The bank’s customers spent 22% more in Paris this month while the singer’s tour was in town. Aron Levine, president of preferred banking, confirmed this increase in spending during an interview.
Levine pointed out that other European cities can expect a similar boost in spending as fans travel to upcoming tour dates in cities like London, Milan, and Vienna. He noted that Taylor Swift concerts have a significant impact on local economies, with cities worldwide experiencing economic benefits as consumers splurge on experiences and live entertainment.
Despite the overall slowing of consumer spending growth, Bank of America has seen an increase in spending of around 3% to 4% from a year ago. However, account balances have decreased from the highs set during the pandemic. Levine oversees more than 30,000 banking employees and financial-solutions advisers, focusing on mass-affluent consumers who use multiple financial products.
Bank of America CEO Brian Moynihan recently stated that US consumers are in good shape, thanks to wage growth, even with elevated interest rates. This resilience of the American consumer is evident in the level of consumer spending reported by Bank of America, showing that consumer confidence remains strong.