February Spending Slows Through PSCU

Spending through the nation’s largest payments CUSO lagged the inflation rate and retail spending gains for February.

PSCU of St. Petersburg, Fla., reported Monday that members of affiliated credit unions spent 0.4% less through credit cards and 2.7% more through debit cards in February than they did a year earlier after adjusting for last month’s Leap Day.

“Overall spending remained steady throughout February, despite a slight dip in consumer sentiment,” Karen Postma, PSCU’s SVP of risk solutions, said.

The Census Bureau reported March 14 that retail spending, excluding automobiles and parts, rose 5.5% in February from a year earlier. The U.S. Bureau of Labor Statistics reported March 12 that the Consumer Price Index rose 3.2% in February from a year earlier.

PSCU member spending also lagged in three categories that are roughly similar to the Census Bureau report:

• Grocery store spending rose 3.9% in February from a year earlier, Census reported. At PSCU, spending rose 2% by credit and rose 3% by debit.
• Gasoline spending fell 1.2% in February from a year earlier, Census reported. At PSCU, spending fell 5% by credit and fell 4% by debit.
• Spending at restaurants and bars rose 10% in February from a year earlier, Census reported. At PSCU, spending rose 2% by credit and rose 3% by debit.

PSCU credit card balances at Feb. 29 were 9.2% higher than a year earlier.

Members whose credit cards are handled by PSCU had an average balance of $2,909, down $110, or 4%, from a year earlier and down $16 from January.

The credit card delinquency rate dipped in February 2024 to 2.60%, up from 2.01% a year earlier and down from 2.67% in January.

“Delinquencies, which typically start the year at a seasonal low point, have remained elevated from the end of 2023,” the report said.

Data released by the NCUA March 12 showed the credit card delinquency rate for all federally insured credit unions was 2.10% on Dec. 31, up from 1.48% a year earlier and 1.90% in September.

Among all credit unions, average credit card balances were $3,258 Dec. 31, up $218 or 7.2% from a year earlier and up $101 or 3.2% from September.

For the same time periods at PSCU, the $3,095 average balance at Dec. 31 was up $178, or 6.1%, from a year earlier, and up $94, or 3.1%, from September.

The PSCU Payments Index was based on data from credit unions that have been processing payments with PSCU since January 2022. It encompassed 3.0 billion transactions valued at $153 billion of credit and debit card activity in the 12 months ending Dec. 31.