Consumer spending in the United States supported economic growth in 2023, prompting economists to postpone recession predictions.

Consumer expenditure is expected to rise 2.3% in 2023 and 1.1% in 2024, according to Bank of America’s economics team.

However, Savita Subramanian, BofA equity and quant analyst, believes that Consumer Discretionary equities should be priced differently.

Retail sales increased 0.7% in July, indicating that consumers will continue to spend in the first half of 2023.

Analysts at BofA increased their ratings on Dick’s Sporting Goods and Academy Sports and Outdoors, implying that a comeback in values could help both companies.