CU Member Credit Transactions & Spend Up in July, CO-OP Report Says

For the first time since the coronavirus pandemic began, CO-OP Financial Services reported that year-over-year spending in its credit and debit portfolio had increased in the month of July.

According to the report, credit transaction volume was up 1%, while the total dollar amount of those transactions increased 10%, compared to July 2019. Meanwhile, CO-OP said, debit transaction volume grew 1%, and the total dollar amount increased 18%.

CO-OP said the increased spending among its members could be the result of savings rates within American households hitting record levels during the months of April and June, according to U.S. Department of Commerce figures, but cautioned against reading too much into the gains.

Spending on traditionally strong areas like air travel and in-person dining and entertainment continued to lag. However, “digital and essentials spending” were on the rise, CO-OP reported. Members were also relying more on debit than credit, though “we may see that trend shift in the coming weeks as members await the passing of a new stimulus relief plan.”

“It may be too early to call this a recovery but it is definitely a good sign that members are resuming ‘normal’ spending despite the continued uncertainty of COVID-19,” CO-OP said in its report.

According to CO-OP, online bookstores, led by Amazon, led the way in increased transaction volume, with credit and debit up 48% and 24%, respectively. Spending on airline travel, car rentals and barber shops, beauty parlors and spas all decreased significantly. However, transaction volume and amounts at hardware stores were up.

The results in the most recent report were largely in line with data from last month, which showed that credit union members’ spending continued to climb toward pre-pandemic levels in the first two weeks of July.