Credit Card Spending Popped In January 2/27/26

Summary

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Your Money Minute: "Credit Card Spending Popped In January" (2/27/26)

Host: Jessica Ettinger, CNBC
Featured Guest: Liz Everett Christberg (Head of Bank of America Institute)
Aired: February 27, 2026
Episode Length of Main Content: ~1:17

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Episode Overview

This episode focuses on new Bank of America data showing a notable increase in credit card spending for January 2026. CNBC’s Jessica Ettinger discusses what the headline numbers mean and highlights a concerning trend: the growing divide in spending habits between higher, middle, and lower income Americans. Insights from Liz Everett Christberg, Head of the Bank of America Institute, shed light on which groups are driving spending and which are starting to pull back.

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Key Discussion Points & Insights

1. Credit Card Spending Surged—But Not Across the Board

• Headline Statistic:
  • Credit card spending grew by 2.6% year over year in January—the strongest increase in nearly two years.
    • "If we look at just the headline number, 2.6% year over year is the strongest number we've seen in almost two years."
      — Liz Everett Christberg (00:10)

2. Growth Driven Largely by Wealthier Consumers

• Post-holiday, the increase wasn't broad-based
• The boost was "pretty much done by wealthier consumers"
  • "That's after the holiday and it was pretty much done by wealthier consumers."
    — Jessica Ettinger (00:16)

3. A Growing Income Divide—Middle Income Pullback

• Not Just a Rich vs. Poor Divide:
  • The spending gap now widening between higher and middle income households, not just between the rich and the poor.
  • "We’re now starting to see the divide grow between higher and middle income households."
    — Liz Everett Christberg (00:27)
• Which way is the middle going?
  • "The middle is going down."
    — Liz Everett Christberg (00:43)
• Implication: Both middle and lower income groups slightly reduced spending in January.

4. Implications for Economy

• The U.S. is a consumer economy: consumer spending comprises about two-thirds of U.S. economic growth.
• Concern: Pullback in spending by broad swaths of consumers could signal increased financial pressure and potential economic slowdown.
  • "Nobody wants to see anyone pulling back any spending."
    — Jessica Ettinger (00:59)

5. Full Interview Available

• Listeners are directed to find more insights from Liz Everett Christberg at CNBC.com.

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Notable Quotes & Memorable Moments

• On the strength of growth
  • "2.6% year over year is the strongest number we've seen in almost two years."
    — Liz Everett Christberg (00:10)
• On the emerging divide
  • "We're now starting to see the divide grow between higher and middle income households."
    — Liz Everett Christberg (00:27)
  • "The middle is going down."
    — Liz Everett Christberg (00:43)
• On economic risk
  • "Nobody wants to see anyone pulling back any spending."
    — Jessica Ettinger (00:59)
• Quick economic primer
  • "Consumer spending makes up about two thirds of US economic growth."
    — Jessica Ettinger (00:59)

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Important Timestamps

• 00:00 – Episode start and overview of Bank of America data
• 00:10 – Liz Everett Christberg discusses the 2.6% spending increase
• 00:16 – Spending growth driven by wealthier consumers
• 00:27 – The growing divide: now affecting middle vs. high income
• 00:43 – Middle class spending is decreasing
• 00:52 – Lower and middle income spending both trending slightly down
• 00:59 – Risk to the broader economy explained
• 01:17 – Wrap-up; pointer to full interview online

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Recap

Jessica Ettinger and guest Liz Everett Christberg highlight that, despite a headline-grabbing jump in credit card spending this January, it's primarily the wealthy driving the increase. Middle and lower income households are tightening their belts—a shift that could have wider implications for the U.S. economy, given consumers’ critical role in growth. The episode underlines the importance of monitoring not just the totals, but who is doing the spending.

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Transcript

[Jessica Ettinger]

With a CNBC you Money minute. I'm Jessica Edinger. Consumers went to town with their credit card spending in January. In new data from bank of America.

[Liz Everett Christberg]

If we look at just the headline number, 2.6% year over year is the strongest number we've seen in almost two years.

[Jessica Ettinger]

That's after the holiday and it was pretty much done by wealthier consumers. Here's more from the head of the bank of America Institute, Liz Everett Christberg on cnbc.

[Liz Everett Christberg]

The thing that I'm concerned that that headline number is masking is is a growing and more expanding divide, not between higher and lower income households that we've known for a long time, but we're now starting to see the divide grow between higher and middle income households. Which way is the middle going? The middle is going

[Jessica Ettinger]

down. Okay, that's CNBC's Kelly Evans in there with Liz. Middle income Americans pulling back their spending last month right along with lower income consumers,

[Liz Everett Christberg]

both the middle and the lower income. If you look at their spending, they went down not a ton, but slightly. That's the shift

[Jessica Ettinger]

that I'm concerned about. The US Is a consumer economy. Consumer spending makes up about two thirds of US Economic growth. Nobody wants to see anyone pulling back any spending. The whole interview with B of A's Liz Everett Christberg [e-mail] I'm Jessica Ettinger, CNBC.

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