For the May edition of their Monthly Consumer Survey Series, Bank of America (BofA) analysts surveyed approximately 1,000 US respondents this month to learn about their spending expectations.

The bank said the findings revealed a significant increase in ‘New Vehicle’ spending expectations for the next 12 months.

Specifically, 43.0% of respondents anticipated buying a new vehicle in May, up from 35.8% the previous month and 41.2% last year.

“This is the highest level since Jan 2023 and showed the largest sequential improvement in all four big-ticket categories,” BofA’s team noted.

“Plans to buy a New Home over the next 12 months have returned to 20%+ levels for the first time in twelve months and increased from 18.5% last month to 24.3% in May,” they added.

Meanwhile, grocery remains the top category where over 35% of respondents expect to spend more in the next three months.

Home Improvement & Renovations also saw over 30% of respondents in May expecting to increase spending in the next three months, representing a notable rise both sequentially and year-over-year. Home Furnishings experienced a sharp increase in spending expectations, from 23.33% in May 2023 to 27.10% in May 2024, BofA highlighted.

In terms of inflation and promotion expectations, fewer than 65% of respondents continue to notice the most dramatic price increases in the Grocery category, down from 72.5% last year and 72.1% last month.

Similarly, fewer respondents are noticing price increases at Restaurants/Bars.

Intriguingly, about 42% of respondents in May have not noticed an increase in discounts or promotions, down from 49.4% last year and 49.9% last month.