Credit Card Spending Fell by $5 Billion in the First Two Months of 2012
04 Maggio 2012 - 2:20PM
Marketwired
Despite consumer spending, which makes up 70 percent of U.S.
economic activity, rising at a faster pace in almost a year
Americans are charging less on their credit cards. This has become
quite troublesome for credit card companies as they rely on
processing fees and interest charges to generate revenue. Five Star
Equities examines the outlook for companies in the Credit Services
Industry and provides equity research on Discover Financial
Services (NYSE: DFS) and American Express Company (NYSE: AXP).
Access to full reports can be found at:
www.FiveStarEquities.com/DFS www.FiveStarEquities.com/AXP
While card companies are benefiting from an increase in card use
by overseas customers and the wealthy the average American has held
back. According to numbers releases by the Federal Reserve credit
card charges in the U.S. decreased by $5 billion in January and
February combined. The recent financial crisis and recession have
led Americans to save more and spend less. With many still
uncertain about the state of the U.S. economy many consumers are
just not ready to rack up new credit card debt. In February
consumers held $799 billion in credit card debt, which was 15
percent less than what they held during the first month of the
"Great Recession."
Five Star Equities releases regular market updates on the Credit
Services Industry so investors can stay ahead of the crowd and make
the best investment decisions to maximize their returns. Take a few
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Consumer confidence was flat in April, as more people saw their
personal finances improving, while the effect of higher gas prices
may have contributed to declining attitudes about the overall
economy. The Discover U.S. Spending Monitor, a nearly 5-year-old
daily poll tracking economic confidence and spending intentions of
nearly 8,200 consumers throughout the month, climbed 0.2 points to
96.7. The Monitor remains at its highest level since October
2007.
American Express recently reported first quarter net income of
$1.3 billion, up 7 percent from $1.2 billion a year ago. Diluted
earnings per share were $1.07, up 10 percent from $0.97.
Consolidated total revenues net of interest expense rose 8 percent
to $7.6 billion in the first quarter of 2012, from $7 billion a
year ago.
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