Americans’ Credit Card Spending Slumped 1.2% in April
US consumer demand is showing signs of weakening, as households curtail their credit card spending for the first time since early 2021.
Data from the Bank of America indicates that household expenditures on credit cards dipped 1.2% year-over-year in April, in line with the latest CPI print indicating the Fed’s aggressive tightening cycle is taming consumer demand, and ultimately inflation. The bank’s figures mark the first decline in credit card spending since February 2021.
The Bank of America found that consumers spent the most at online retailers and at department stores, whilst significantly curtailing spending on airlines, lodging, and furnitureā an indication that non-discretionary spending on leisure has likely peaked. Likewise, the data showed that household spending on durable goods also continues to wane.
Information for this briefing was found via Bank of America. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
