Bank of America cardholders’ Black Friday spending saved November from a sales decline

New internal data from Bank of America shows that its customers’ holiday spending in November was, as predicted, more concentrated around Black Friday this year.

The bank found that credit and debit card spending on holiday items in November was up 1% year over year. Customer spending was down YoY at the beginning of the month, but surged around Black Friday and Cyber Monday.

Based on Bank of America data for 2019 and 2022, 10% of all holiday spending usually takes place between Thanksgiving and Cyber Monday. That number was up 5% this year, with clothing and cosmetics, as well as air travel and event tickets, notably fueling the uptick. The increase happened despite the fact that many consumers started their holiday shopping as early as October.

• BoA customers’ overall card spending inched back into positive territory, growing 0.5% YoY in November after a 0.5% drop in October.

Among these shoppers, younger consumers were more cautious in their spending. BoA’s boomer customers spent 2.3% more on the holidays this November than last year, while millennials and Gen X saw year over year declines. Bank of America said an 8.7% cost-of-living adjustment (COLA) to Social Security this year helped boost the older generation’s spending.

Still, the bank said its outlook for younger generations was “largely supportive,” due to solid wage growth and elevated savings deposits compared to 2019.

Falling prices: The report came on the heels of yet another Consumer Price Index (CPI) showing that inflation is moderating. The year over year rate dropped to 3.1% in November, down from 3.2% in October—though the monthly rate went from flat to a slight increase of 0.1%.

• Retail-focused categories such as apparel, footwear, jewelry, and household furnishings all saw price drops.

Prices for consumer electronics such as computers, computer accessories, and smartphones also declined, but shoppers continued to hold off on those categories.

Consumer research firm Circana found that unit sales of electronics were down 3% YoY during Black Friday week. Television sales broke the mold, rising 3% from last year.

“Consumers are starting to emerge from their pandemic splurges, and looking for products that they feel are worth spending on in the current economic environment,” Paul Gagnon, consumer technology industry advisor for Circana, said in a statement.