ST. PETERSBURG, Fla.--Consumer spending remained slow in June, with debit card activity declining from its peak in January as the downward trend continues, according to data from the July edition of the Velera Payments Index.
“As economic headwinds and tariff-related price pressures ripple through the economy, we're starting to see a shift in how households manage day-to-day spending – notably in the continued decline of debit activity since its peak in January,” said Denise Stevens, executive vice president, chief product officer, Velera. “For credit unions, this presents both a challenge and an opportunity: to support members facing tighter budgets while adapting to evolving financial behaviors. Now is a pivotal time to reassess member engagement strategies and ensure that products and services are aligned with changing spending patterns and liquidity needs.”
Key takeaways for June, according to Velera, include:
- Growth remained slow for credit and debit in June, with debit trending downward. Debit purchases were up 3.6%, with the Goods and Money sectors contributing to 80% of the growth. Credit purchases were up 1.3% with the Services sector comprising the entire increase, fueled by insurance premiums. For June, debit transactions were up 2.2% and credit transactions were up 1.1%.
- The 12-month CPI through June increased by 2.7%, up 0.3% from May. The Shelter index continues to contribute significantly to the monthly increase, up 0.2 percent in June, while the Energy index increased by 0.9 percent. Core inflation, which excludes food and energy, is up 0.2% at 2.9% for June.
- Overall credit card balances were down for the first time in Payments Index reporting. While the rate of growth has been in decline since its peak in September 2022, year-over-year growth in overall balances was down 0.6% for June 2025. Average credit card balances have been very flat for each month of 2025, with June finishing at $2,949.
The full report is available for download here