PSCU: Debit Card Spending Accelerates in November
However, members using its services spent little more than a year ago by credit card.
PSCU, the St. Petersburg, Fla., payments CUSO, released its monthly Payments Index report Dec. 18 showing credit card spending grew only 0.5% in the 12 months ending in November, after growing 5% from November 2021 to November 2022.
Debit card spending grew 3.9% in the 12 months ending in November after growing 3% a year earlier.
“With retailers launching holiday promotions earlier each year, the longer promotion cycle has contributed to an overall slower pace of holiday spending,” Norm Patrick, vice president of Advisors Plus Consulting at PSCU, said. “This year, the important Black Friday through Cyber Monday shopping weekend delivered positive year-over-year growth in consumer purchases and transactions in the Goods sector.”
The PSCU data followed the Census Bureau’s Dec. 14 report showing that unadjusted retail spending, excluding automobiles and parts, rose 3.9% in November from a year earlier.
Similar categories in the Census retail spending report and PSCU’s Payment Index showed:
- Grocery store spending rose 0.4% in November from a year earlier, Census reported. At PSCU, spending was flat by credit and rose 4% by debit.
- Gasoline spending fell 9.4% in November from a year earlier, Census reported. At PSCU, spending fell 9% by credit and fell 6% by debit.
- Spending at restaurants and bars rose 11.5% in November from a year earlier, Census reported. At PSCU, spending rose 4% by credit and rose 6% by debit.
Seasonally adjusted retail trade sales were up 3.1% from a year earlier and up 0.1% from October.
PSCU reported its average credit card balance increased to $3,056 in November, surpassing the pre-pandemic 2019 average for the second consecutive month. The November balance rose by $198, or 6.8%, from a year earlier, and rose $25, or 0.8%, from October.
PSCU’s total credit card balances grew 8.9% year over year in November 2023, up 1.6% from October and slowing from 13% growth a year earlier.
The CUSO’s credit card delinquency rate reached a high of 2.46% in November, up from 54 basis points from a year earlier and up 13 bps from October.
The PSCU Payments Index was based on data from credit unions that have been processing payments with PSCU since January 2021. It encompassed 2.9 billion transactions valued at $147 billion of credit and debit card activity in the 12 months ending Nov. 30.