According to Card Issuer executives, American consumers are becoming more cautious about spending Synchronization.
in Interview Reuters along with EVP and Chief Credit Manager on Tuesday (March 25th) Max Axler He said that Americans' finances are more or less healthy, but consumers are still preparing to expand their budgets.
“As consumers in all income groups become more thoughtful about spending, purchase volumes have declined across the industry,” Axler told Reuters, saying that most customers remain in the scope of their loan repayments.
The report points to other indications of economic distress, including recent reports from the Federal Reserve showing that consumers are gaining more debt as delinquent on car loans, credit cards and home credit lines creep in.
Meanwhile, US consumer sentiment fell to levels not seen in more than two years in March amid rising expectations about inflation. Reuters said some economists have warned that President Donald Trump's widespread tariffs could raise prices and stunt growth.
Worries about rising prices have raised consumers' long-term inflation expectations to the highest level in over 30 years.
“There's a lot of uncertainty in the market.” QED Investor partner Amias Gerety He spoke to Pymnts CEO Karen Webster earlier this month. “Consumers are still spending, but we can see hesitance creeping up, especially when it comes to buying big tickets.”
There is also recent data showing that access to credits could be tightened, according to the latest version. Consumer Expected Credit Access Survey SurveyIt was released last week Federal Reserve Bank of New York.
The survey shows that rejection rates have risen for all major credit products, with car loan denials likely to reach 33.5% last month, reaching the highest level since the survey began.
The data also shows a surge in the percentage of consumers hoping to worsen credit access next year, a surge in the number of consumers who are hoping to worsen credit access in October 2024, from 42.3% to 46.7%.
Speaking to Reuters on Tuesday, HSBC Analyst Saul Martinez The banking sector overall said lending growth slowed from 5% to 12% in February compared to the previous year.
“There's clearly been a slowdown, indicating that consumers are vulnerable,” Martinez said. “And for banks, slowing down loan growth can lead to lower net interest income and revenue.”
