Are Consumers Holding Back or Powering Through?
With headlines bouncing between inflation fears and spending spikes, many are left wondering: is the economy really up or down?
Modest Growth, Strategic Spending
A recent report from Bank of America shows that, in March 2025, consumer spending was up 1.1% year-over-year, according to credit and debit card data. While this is modest growth, it shows that consumers are still indeed spending. Further data shows that their money is spent more on essential services, such as rent and utilities, than discretionary services, such as entertainment and dining, as consumers are more careful about how they spend their money. High-income consumers are currently spending more than middle- and low-income consumers, due to high-income consumers’ stronger wage growth.
Auto Purchases Surge Ahead of Tariffs
Overall, consumers have been buying more cars in March, in advance of anticipated tariffs. Ahead of the April 2 start of tariffs, between March 27 and April 1, there was a 23% year-over-year increase in applications for vehicle loans.
How CBE Supports Essential Service Providers and Their Customers
At CBE Group, our clients serve consumers in a variety of industries, including those providing essential services, such as utilities and healthcare. These vitally important services keep the country running smoothly and we support consumers’ interest in the value of these services. We make it easy for our clients’ customers to pay their balances in full via our 24/7 smart IVR and our online portal options, or work with customers to create a convenient payment plan with the help of our live voice contact center agents.