ATLANTA — A new report from Bank of America shows a growing divide in the U.S. economy.

According to the report, debit and credit card spending rose 3.2% last month compared to a year ago, the highest level in more than three years.

Economists say most of the spending came from higher and middle income households. Lower-income consumers were also spending, but not as much.

The report describes the trend as part of a “K-shaped economy.”

Overall, the report finds most consumers remain in good financial health when looking at credit card limits. However, economists say there has been a continued rise in the number of people making only the minimum payment on their credit cards.

The report also shows average tax refunds have been larger for higher-income households so far in 2026.

WSB Radio’s Sabrina Cupit contributed to this story.