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Investing.com -- Online spending grew 13% year-over-year in May, accelerating 2 percentage points from April, according to Bank of America aggregated credit and debit card data analyzed by analyst Justin Post.
The growth outpaced brick-and-mortar retail, which increased 4% year-over-year in May, with the acceleration largely driven by rising gas prices. Online penetration expanded 1.8 percentage points year-over-year to 29.8% in May.
Post expects online penetration gains to continue in 2026 driven by AI-enabled service level improvements and grocery expansion. The analyst noted that gas and other inflation could start to impact discretionary spending.
For Amazon, Street projections show North America retail growth of 14% year-over-year in the second quarter, a 2 percentage point acceleration quarter-over-quarter. Bank of America card data suggests online spending has accelerated 1 percentage point quarter-to-date. Amazon will host Prime Day in June, compared to July last year. Post maintains a Buy rating on Amazon given continued retail share gains and positive exposure to AI with AWS.
Transit spending grew 6% year-over-year in May, decelerating from 18% in April, which reflected comparisons to New York tolling downtimes. Transit spend stands at 11% for the second quarter to date versus 4% for the first quarter.
Online restaurant spending has grown 10% year-over-year quarter-to-date, a 2 percentage point acceleration from the full first quarter. Online grocery spending increased 6% year-over-year in the second quarter to date, stable from the first quarter.
Electronics showed the strongest acceleration in May, with year-over-year growth up 10 percentage points from April. Department stores accelerated 4 percentage points, and sporting goods increased 4 percentage points. Transit decelerated the most, with year-over-year growth slowing 12 percentage points from April.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Source: Investing.com Forex