ST. PETERSBURG, Fla.– During April growth rates among credit union cardholders were positive, but only up “modestly” year over year, according to Velera.
The company said data for its client credit unions show debit purchases were up 3.2% and credit purchases were up 1.1%. Debit transactions were up 2.7% and credit transactions were up 2.2% year over year.
Those numbers come at the same time national data show growth in consumer spending was modest in April, “aligning with slowing economic indicators that could stimulate Fed rate cuts later this year,” Velera said.
The findings were released as part of the Velera Payments Index, which also takes a deep dive into the overall food category, which includes groceries and dining out – and provides additional context for inflationary impacts on non-discretionary spending.
‘Stubbornly High’ Grocery Prices
“As overall inflation continues trending downward, consumer spending growth remained at modest levels in April,” Norm Patrick, VP-Advisors Plus Consulting at Velera, said in a statement. “In this month’s Deep Dive into the Overall Food sector, we see grocery store spending maintaining the largest allocation of spend across both credit and debit. With stubbornly high grocery and restaurant prices remaining elevated, food costs continue to eat up the highest percentage of household budgets in more than 30 years.”
Key Takeaways
According to Velera, key takeaways from its April report include:
- The Consumer Price Index (CPI-U) increased 0.3% in April, while the 12-month rate of inflation was 3.4%. Shelter and Gasoline again contributed to more than 70% of the increase. Excluding the volatile Energy and Food sectors, the core CPI index increased 0.3% from March, putting the 12-month Core CPI index at 3.6%.
- While there was positive growth in Overall Food purchases (up 1.8% for credit and up 2.5% for debit), consumers are spending slightly less on average in the Grocery Store & Supermarkets segment, which represents the largest portion of Overall Food. The average credit purchase at supermarkets was $52.98, down 1.6% year to date compared to 2023. The average debit supermarket purchase was $52.09, down 0.5% for the same period, Velera reported.
- For April, total balance transfer dollars were more in line with seasonal changes, down 4% year over year. “The volume of balance transfers was down 18% compared to April 2023. The typical seasonal peak in March was greatly reduced and may have spilled into April activity, with income tax filings due on April 15,” Velera said. “The average amount of balance transfers was up 16%, or $572, at $4,146.”
- The credit card delinquency rate continued to decline in April, finishing at 2.34%.
The full report is available for download here.
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