Credit card spending has taken a nosedive, officially entering contraction territory, despite a reported 35% surge in retail sales above pre-pandemic levels. The discrepancy between retail sales growth and the significant decline in credit card transactions reveals a stark contrast in consumer behavior.
Amidst a backdrop of soaring prices, with a 20% increase since before the pandemic, consumers are tightening their belts when it comes to credit card usage. This financial restraint is particularly evident among millennials, where credit card delinquency now surpasses pre-pandemic levels, as reported by the Federal Reserve.
Millennial credit card delinquency exceeds pre-pandemic levels, per the Fed: pic.twitter.com/FcUK1XCNmf
— Win Smart, CFA (@WinfieldSmart) November 29, 2023
Prices are up 20% since before the pandemic, but credit card spending is down…
The latest retail sales are reported to be 35% *above* their pre-pandemic levels.
That's a big difference. Basically a 40% difference.
— ᶜʸᵇᵉʳˢᵉᶜᵘʳⁱᵗʸ (@CyberSecurity__) December 4, 2023