RANCHO CUCAMONGA, Calif.—Year-over-year spending inside the CO-OP Financial Services credit and debit portfolio increased last month for the first time since the pandemic arrived, the CUSO reported.
Credit transaction volume increased 1% while the total dollar amount of those transactions increased 10%. Meanwhile, debit transaction volume grew 1% while the total dollar amount was up 18%.
“According to the U.S. Department of Commerce, the savings rates within American households hit record levels during the months of April and June, which may explain the increased spending among members,” CO-OP said. “It may be too early to call this a recovery but it is definitely a good sign that members are resuming ‘normal’ spending despite the continued uncertainty of COVID-19.”
At the same time, spending within traditionally popular categories such as air travel and in-person dining and entertainment continues to lag, while digital and essentials spending are on the rise. Members are also relying more on debit than credit – although that trend may shift in the coming weeks as members await the passing of a new stimulus relief plan, CO-OP stated.
Category Spending Trends
The following are category-level spending trends for the month of July (data comparing July 1-31, 2020 with July 1-31, 2019):
Online Bookstores (Amazon)
Transaction Volume (#):
- Credit: Up 48%. Debit: Up 24%
Transaction Amount ($):
- Credit: Up 42%. Debit: Up 20%
Airline Travel
Transaction Volume (#):
- Credit: Down 48%. Debit: Down 54%
Transaction Amount ($):
- Credit: Down 69%. Debit: Down 60%
Car Rentals
Transaction Volume (#):
- Credit: Down 49%. Debit: Up 16%
Transaction Amount ($):
- Credit: Down 41%. Debit: Up 24%
Barber, Beauty Shops and Spas
Transaction Volume (#):
- Credit: Down 33%. Debit: Up 24%
Transaction Amount ($):
- Credit: Down 26%. Debit: Down 16%
Hardware Stores
Transaction Volume (#):
- Credit: Up 29%. Debit: Up 29%
Transaction Amount ($):
- Credit: Up 43%. Debit: Up 47%
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