Loading the Agenda…
Loading the Agenda…
Worth notingAgendaAXPFri, Oct 23 Time to be announced1 min read
American Express processes card payments and lends to cardholders, so its report shows both what customers spend and whether they repay their borrowing. Recent airline reporting showed travelers still booking, but employment growth alone does not establish stronger household purchases. Amex provides evidence of actual card spending across goods and services, although its generally more affluent customer base does not represent all US households.[1]
Look at which goods and services drive card spending, then compare that with late payments, credit losses and funding costs. Growing spending with steady repayment could support payment companies and travel, restaurant and retail stocks serving more affluent customers. Slower spending or worsening credit would pressure those businesses' revenues and lenders' profits. Higher card spending can also reflect higher prices rather than more purchases. Watch differences between customer groups and whether fee and interest revenue covers credit and financing costs.[1]