Spending Stays Strong for AmEx

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American Express’ (AmEx) affluent customers show few signs of curbing their spending, indicating a strong sense of stability and resilience despite ongoing economic uncertainty and negative headlines.

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Card member spending (billed business) on AmEx cards increased 6% year-over-year during the period. AmEx’s growth was primarily driven by younger cardholders, with Millennials and Gen Z increasing their spending by 14% during the quarter. In contrast, Gen X and Baby Boomers were more cautious, with spending rising by just 5% and 1%, respectively.

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Restaurant spend, the ultimate discretionary expense, was also up 8% in the period.

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Aside from the spending slowdown among older customers, the weakest spot in AmEx’s cardholder data was airline transactions. Growth in the category slowed to just 3%, a sharp drop from the 13% increase seen in the fourth quarter.

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With affluent cardholders at the core, AmEx is somewhat well-shielded from consumer belt-tightening.