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Cautious consumers shunned big-ticket items last year

Higher tax refunds could lift discretionary spending in 2026, but the labor market is the biggest factor, according to Bank of America Institute research.

U.S. consumers last year shelled out their extra spending money on smaller items — including used goods, apparel and dining out — rather than big purchases like electronics, furniture, hotels and air travel, according to research from the Bank of America Institute earlier this month.

“2025 was defined by savvy consumers looking to stretch a dollar,” said Liz Everett Krisberg, head of the institute, and David Michael Tinsley, senior economist. They noted “a clear split in discretionary spending” by categories, based on Bank of America credit and debit card data. 

Cautious consumers shunned big-ticket items last year | Retail Dive

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