A US recession is unlikely given the latest consumer spending data from Investing.com

Investing.com – Bank of America Corp (NYSE: ) Chief Financial Officer Alastair Borthwick said a U.S. recession is unlikely thanks to strong levels of consumer spending in the world’s largest economy.

Speaking to investors at a conference, Borthwick described US consumers as “in good shape” and the country’s main lender increased spending by 4% over last year.

It said that while retailers are seeing a greater focus on essentials, buying behavior is showing signs of shifting from goods to services.

Borthwick’s comments came as data showed consumer spending rose at the fastest pace in six months in July. Economists have stressed that the pace is unsustainable, as a Covid-19 savings squeeze, student loan repayments due in October and higher borrowing costs convince shoppers not to finance credit card purchases.

Consumer confidence fell for a second straight month in September, according to a University of Michigan survey last week, although short-term inflation expectations fell to their lowest level in more than a year.