ST. PETERBURG, Fla.– Consumer spending in debit accelerated in May 2024 while credit spending softened, yet “remained positive,” according to the newest Velera Payments Index.
The June Index also takes a deep dive into gasoline prices, which it notes have “notably contributed to the higher-than-desired rate of inflation – but has recently experienced stabilization in this non-discretionary spending category.”
The new Index also takes a look at the EV Charging merchant category.
The Economy
When it comes to economy, the Index points out:
- After three months of declines, the Consumer Confidence Index increased in May to 102.0 from a slightly upward revised April result of 97.5
- Conversely, the University of Michigan Index of Consumer Sentiment decreased 8.1 points to 69.1 for May, following three months of very little change. “The drop in sentiment was primarily attributable to consumer outlook on the labor market (with an expected increase in unemployment) and slowing income growth,” Velera stated. “Sentiment on personal finances was mainly unchanged for the month.”
- Jobs grew more than expected in May with 272,000 jobs created, higher than the monthly gain over the past 12 months of 232,000 jobs.
- The Labor Department’s June 12 update, the Consumer Price Index (CPI) was unchanged in May, bringing the cumulative 12-month rate of inflation to 3.3%.
Key Takeaways
According to Velera, key takeaways from May include:
- For May, growth rates improved for debit and softened for credit year over year. Debit purchases were up 6.4%, with a third of the debit growth coming from Money Services, while credit purchases were up 0.1%. Debit transactions were up 4.5% and credit transactions were up 1.8% year over year.
- Growth in the Gasoline sector (this month’s deep dive), with debit purchases up 2.4% and credit purchases up 0.3%, was mainly attributable to Service Station activities – which may include non-fuel purchases. Growth in true gasoline purchases at Automated Fuel Dispensers (AFDs) was modest, with debit AFD purchases up 0.7% and credit AFD purchases up 0.1% year over year.
- The credit card delinquency rate was unchanged in May compared to April, finishing at 2.34%. Year over year, the percentage of balances delinquent was up 48 basis points from 1.86%.
The full report is available for download here or can be shared as a PDF upon request. Please let us know of any questions or additional needs, or if you’d like to coordinate an interview.
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