A market research group with a specialty in tracking card data said consumers are putting more on their credit cards now than at any time after the start of the economic downturn.
Synovate, the market research arm of Aegis Group plc frequently tracks and analyzes card data.
"We are being repeatedly reminded that anybody betting against the US consumer ends up on the losing side. American consumer spending accounts for approximately 70% of the US's GDP, and a robust spend of over $1,600 suggests that the 'Dr. Dooms' of the world may be underestimating this economy's recovery," said Anuj Shahani, director of Competitive Tracking Services for Synovate's Financial Services group.
Shahani also suggested that an increase in the numbers of card offers being made to U.S. consumers suggests that the credit card market fundamentals are strengthening.
Synovate reported that during the second quarter of this year, US households received 640.3 million credit card offers, an 83% increase, versus 349.1 million offers mailed during the same time a year ago.
The firm found Chase Bank was the lead issuer and that it had increased it mailings by four times over the same period in the prior year. Citibank, the second largest mailer in the second quarter demonstrated a major comeback by showing significant growth quarter over quarter, almost triple their mailings from the first quarter. The Discover brand also increased its mailings by 70% in the second quarter versus the prior quarter.
"Synovate Mail Monitor also recorded the third consecutive quarterly increase in credit card mailings since we hit a significant low in Q3 2009.," Shahani said. "Despite the uncertainty introduced by the CARD Act, Fin Reg, and other such legislative changes, we are seeing the credit card issuers get back to market, trying to entice consumers once again," he added.
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