BofA: Online spending accelerates to 12% growth in March

Bank of America's research division reported on Monday, March 31, 2025, that U.S. consumer spending through online channels accelerated to a 12% year-over-year growth rate for the month, signaling a significant rebound in digital commerce activity. The data, derived from aggregated and anonymized credit and debit card transactions processed by the bank, indicates a notable pickup from the more modest growth rates observed in the preceding months of January and February. The March acceleration is attributed to several converging factors. Analysts point to the release of pent-up consumer demand following a period of economic uncertainty, coupled with a wave of aggressive promotional campaigns and early spring sales launched by major retailers. Furthermore, the continued expansion of 'buy now, pay later' (BNPL) financing options at checkout is believed to have lowered the barrier for larger online purchases, particularly in categories like electronics and home goods. This growth occurred despite persistent concerns over inflation, suggesting a shift in consumer priorities towards convenience and value-seeking through digital platforms. The report highlights a broader trend of digital transformation within the retail sector, where e-commerce is no longer just a supplementary channel but a core driver of revenue. Bank of America's data is closely watched by economists and market participants as a near-real-time barometer of consumer health. The strong March figures may influence Federal Reserve policy assessments and corporate earnings forecasts, as robust online spending often precedes stronger overall retail sales data. The performance underscores the resilience of the consumer sector and the entrenched nature of digital shopping habits post-pandemic.