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Macro EconomyUpdated•Originally published 15 April 2026•Updated 15 April 2026•

1 min read

US Consumer Spending Resilient Despite Gas Price Surge and Stagflation Fears

Key Facts

1BofA CFO stated that overall consumer strength remains intact despite a 16% jump in gasoline spending during March.

2The national average for 87-octane gasoline has remained above the $4-a-gallon level for two consecutive weeks.

3Goldman Sachs analysts expect a mild stagflation shock resulting from the seven-week U.S.-Iran conflict.

Bank of America's Q1 results, released on Wednesday, April 15, confirmed that US consumer resilience remains intact despite persistent inflationary pressures. The bank reported a 7% increase in consumer card volumes, with over $1 trillion in total flows moving through its payments ecosystem during the first quarter. This robust activity persists even as gasoline spending surged by 16%, with national averages holding above $4 per gallon according to AAA. While Goldman Sachs analysts continue to warn of a potential mild stagflation shock due to geopolitical tensions, discretionary spending in travel and entertainment remains strong. Markets are closely monitoring these record payment flows to see if they can continue to offset high energy costs. The economic outlook remains a balance between robust domestic demand and global energy supply risks.

4 months ago

Version History

Version 14 months ago

What changed: Updated the story with Bank of America's Q1 earnings data, showing 7% growth in card volumes and over $1 trillion in payment flows.