The consumer is still healthy and spending, says BofA's Holly O'Neill

Core Insights - Consumer spending has increased for the third consecutive month, indicating resilience despite a slowing job market [1][2] - Total spending rose by 1.7% in September, with adjusted monthly increases of 4%, 6%, and 4% over the summer months [2][3] - The data suggests that consumers remain healthy and spending, which typically does not align with recession indicators [3] Consumer Spending Trends - Higher income brackets are leading spending, with low-income consumers also showing positive spending compared to the previous year [4] - Different generations exhibit varying spending behaviors, with traditionalists (over 80) spending up by 2.4% in August, while Gen X and millennials showed increases of 0.5% and 0.1% respectively [4][5] Housing Market Insights - Rent increases have slowed, with a month-over-month rise of only 1% in August, indicating potential relief in housing costs [5][6] AI in Consumer Banking - The integration of AI in consumer banking presents significant opportunities, with the Bank of America utilizing AI tools like Erica, which has facilitated three billion interactions since its launch in 2017 [6][7] - The advancement of AI technology is expected to enhance customer service through more intuitive and personalized interactions compared to traditional automated systems [7][9]