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- American consumption expenditure remains strong despite economic uncertainty.
- Capital One declared a 5% increase in credit card purchase volume to $ 157.9 billion in the first quarter.
- The reimbursement of consumer debt is also stable, with the improvement of delinquency rates and payment rates.
The powerful American consumer is “in good shape”, even in the face of economic uncertainty, in the midst of President Donald Trump’s policy changes, said the boss of a credit card giant on Tuesday.
“The American consumer remains a source of strength in the economy. This is true for almost all the metrics we examine,” Richard Fairbank, president and Capital Ondernat, said on Tuesday, when the bank’s first quarter of the bank on Tuesday.
Capital One said that the Banking Credit Purchase Volume increased 5% to 157.9 billion dollars in the first quarter.
Consumer spending was stimulated in the first quarter while people took goods before Trump’s new trade rates on business partners.
In particular, there seems to be “a little traction in car purchases, probably, because consumers are trying to get ahead of pricing,” said Fairbank.
Despite inflationary pressures and higher interest rates, the overall reimbursement of consumer debt remains stable near pre-pale levels, said Fairbank.
“In our card portfolio, we see an improvement in delinquency rates and lower delinquency entries, and payment rates are improving over one year on the other,” he said.
There are disturbing signs-the part of customers just making the minimum payment was just above pre-pale levels, reflecting that “although the average customer is doing well, some customers are probably feeling the stress of inflation and high interest rates,” said Fairbank.
Capital One shares closed 3.1% to $ 170.20 each on Tuesday and extended 2% of exchanges after opening hours. The stock is down 4.6% so far this year.
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