American Express and Discover Look to Gain as U.S. Credit Card Spending in May Increased the Most Since the Great Recession
11 Luglio 2012 - 2:20PM
Marketwired
U.S. consumers spent more on their credit cards in May than any
other month since the Great Recession. "We might see additional
increases in credit card debt in the coming months," said Paul
Edelstein, IHS Global Insight consumer financial economics
director. "But they won't match the May surge." Five Star Equities
examines the outlook for companies in the Credit Card Industry and
provides equity research on Discover Financial Services (NYSE: DFS)
and American Express Company (NYSE: AXP).
Access to the full company reports can be found at:
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"It is possible that households are relying more and more on
credit cards to cover everyday expenses, given that job and income
growth are so weak," added Edelstein
According to a report released by the Federal Reserve Monday
consumer borrowing increased by $17.1 billion in May. The increase
brought the seasonally adjusted borrowing total to $2.57 trillion,
just under the all-time high of $2.58 trillion in July of 2008.
Credit card debt increased by $8 billion, the largest single month
increase since November 2007. Although the gain was quite
impressive the total level of credit card debt in May was just 2.2
percent above post-recession lows set in April 2011.
Five Star Equities releases regular market updates on the Credit
Card Industry so investors can stay ahead of the crowd and make the
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Shares of Discover Financial Services have soared nearly 43
percent year-to-date. Consumer confidence in the economy and
personal finances, which are key economic indicators, worsened in
June to the lowest levels since January 2012. The Discover U.S.
Spending Monitor, a 5-year-old daily poll tracking economic
confidence and spending intentions of nearly 8,200 consumers
throughout the month, declined 4.8 points to 90.7 in June.
American Express announced its network roadmap to advance EMV
chip-based contact, contactless and mobile payments for all
merchants, processors and issuers of American Express-branded cards
in the U.S. "The payments industry is continuing to evolve rapidly,
and American Express recognizes the growing demand for chip-based
contact and contactless payments in the U.S.," said Suzan Kereere,
Senior Vice President and General Manager, American Express Global
Network Business. Shares of the company are up nearly 24 percent
year-to-date.
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