ST. PETERSBURG, Fla.–Even though high inflation is affecting everything from energy prices to groceries, consumer purchasing activity during September showed continued resilience in both credit card and debit card volume, according to the October 2022 edition of the PSCU Payments Index.
The October report also takes a Deep Dive into the Utilities sector as energy forecasts become top of mind heading into the winter months, PSCU said.
In conjunction with releasing the data, PSCU noted the Labor Department’s Oct. 13 update to the Consumer Price Index (CPI) showed prices were up 0.4% for September, bringing the 12-month rate of inflation to 8.2%. Increases in shelter, food and medical care were largely offset by a 4.9% decrease in the gasoline index.
Key Takeaways
According to PSCU, some of the key takeaways from its October report include:
- Consumer spending on cards remains strong, with credit cards continuing to outpace debit cards. For September, credit purchases were up 13% and debit purchases were up 6% year over year. Year to date through September, credit purchases were up 18% and debit purchases were up 6%. Current inflationary pressures continue to drive growth in purchases, outpacing growth in transactions. For September, growth in overall transactions was up 11% for credit and 3% for debit.
- In this month’s Deep Dive on Utilities spending, PSCU said the two main components of the sector detail the inflationary impacts of energy costs and potential concerns of “fuel poverty” as the country approaches the winter months. Growth in purchases for electric, gas (propane and home heating fuel), water and sanitation was up 29% for credit and 15% for debit for September 2022. For transactions, credit was up 13% and debit was up 5% for September.
- The second half of the Utilities sector, comprised of telecommunications and cable/internet access, saw year-over-year purchases up 9% for credit and up 1% for debit. For transactions, credit was up 10% and debit was down 2% for September.
- The September average credit card balance per active account was $2,797, up 6.1% (or $160) year over year. Credit card balances surpassed the September 2020 results of $2,787 for the first time since the decline in card balances that began in early 2020. The credit card delinquency rate for September was 1.74%, 16 basis points lower than pre-pandemic September 2019 levels.
The full report is available for download here
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