Consumer spending patterns heading into 2026 show a subtle but important shift toward entertainment, even as households continue to navigate higher prices for essentials such as housing and food, according to
new findings from the Bank of America Institute.
While rising shelter costs have squeezed budgets, particularly for lower-income consumers, the report notes that entertainment has quietly expanded its share of the consumer wallet for the past three years, with Bank of America payments data showing a consistent increase from 2023 through 2025. Entertainment grew another 0.5 percentage points in 2025 alone, marking one of the few discretionary categories still gaining ground.