Investing.com -- Bank of America Corp (NYSE:BAC) finance chief Alastair Borthwick has argued that it is "difficult to see" a recession occurring in the U.S. due to strong levels of consumer spending in the world's largest economy.
Speaking to investors at a conference, Borthwick described consumer in the U.S. as "in good shape," adding that the prominent domestic lender has tracked a 4% jump in spending compared to last year.
He said purchasing behavior has showed signs of shifting away from goods and into services, while retailers have also seen an increased focus on essential items.
Borthwick's comments come as data shows that consumer expenditures accelerated at their fastest rate in six months in July. Economists have flagged that this pace is likely to prove unsustainable as COVID-19 savings dwindle, student loan repayments restart in October, and elevated borrowing costs persuade buyers to refrain from using credit cards to fund purchases.
Consumer sentiment inched down for a second consecutive month in September as well, according a survey from the University of Michigan last week, although expectations for near-term inflation dipped to their lowest level in over a year.