PSCU Finds Energy Fueling Member Spending

Credit union members continued to increase their spending in September with rising prices, especially for energy, being a major factor, according to a PSCU report Tuesday.

PSCU, a payments CUSO based in St. Petersburg, Fla., showed overall dollars spent on credit cards in September was 13% higher than in September 2021, while the number of transactions rose 11%. Debit spending rose 6%, while transactions rose 3%.

But the PSCU Payments Index found the disparity between dollars and transactions was especially high for energy: From gasoline to utilities.

“The U.S. economy continues to face persistently high inflation, a looming recession and rising energy prices. Yet consumer purchasing activity showed continued resilience in both credit card and debit card volume in September,” the report said.

Spending for gasoline rose 26% by credit card — twice as fast as the 13% increase in transactions. By debit, spending rose 13% while transactions rose 3%.

For electricity, natural gas and water, spending rose 26% while transactions grew 12%. By debit, spending rose 14% while transactions grew 5%.

Among credit union members receiving their first deliveries of fuel oil or propane in September — typically in the north— spending for those home heating fuels rose by 50%, while transactions rose 25%. By debit, spending rose 45%, while transactions rose 14%.

The U.S. Census Bureau reported Oct. 14 that retail spending, excluding automobiles and parts, rose 9.4% in September from a year earlier.

Census found grocery store spending rose 7% in September from a year earlier, Census reported. At PSCU, spending rose 17% by credit and rose 7% by debit.

Spending at restaurants and bars rose 13% in July from a year earlier, Census reported. At PSCU, spending rose 21% by credit and rose 7% by debit.

The average credit card balance was $2,797 per active account handled by PSCU in September, up 6.1% (or $160) from a year earlier.

“Credit card balances surpassed the September 2020 results of $2,787 for the first time since the decline in card balances that began in early 2020. The credit card delinquency rate for September was 1.74%, 16 basis points lower than pre-pandemic September 2019 levels,” the report said.

The Fed’s G-19 Consumer Credit Report released Oct. 7 showed credit card balances grew 13.3% to $69.8 billion in August from a year ago, and rose 1.2% from the previous month, compared with an average July-to-August gain of 1% from August 2015 through August 2021.

The PSCU Payments Index was based on data from credit unions that have been processing payments with PSCU since January 2020. It encompassed 2.9 billion transactions valued at $144 billion of credit and debit card activity in the 12 months ending Sept. 30.