The Boomer spending boost

What explains this year's pop in consumer spending? Boomers might be at least partially to blame.

The big picture: Social security recipients (of which retirees make up an overwhelming share) received an 8.7% cost-of-living adjustment this year — the single-largest increase in more than four decades. That is helping support spending, according to new research from Bank of America.

Driving the news: The bank's card spending data shows faster spending growth this year among households more likely to receive those payments, relative to those that don't.

In a new report, BofA economists found that as of mid-February, baby boomers and the preceding generation saw total card spending per household jump by 4% and 6% year-over-year, respectively. That compares to just 2% for all age groups.