JPMorgan: US debit, credit card spend up about 19% over 2019
Sep 14, 2021 | By PYMNTS.com
U.S. consumer spending is still going strong despite the delta variant’s prominence, according to executives from J.P. Morgan and Wells Fargo, the Financial Times (FT) reported.
At J.P. Morgan Chase, which is the largest bank in the country, debit and credit card spending is tracking 18% to 19% higher than in 2019, the report stated. And consumer spending has seen a jump in 2021 from a low point at the end of 2020.
J.P. Morgan Chase Co-CEO of Consumer & Community Banking Marianne Lake said, “strength stayed with us through the summer season, and as we sit here today,” according to the report.
In addition, Wells Fargo Chief Financial Officer Mike Santomassimo said, per the report, despite the delta variant, “you’re still seeing [the economic recovery] move forward.”
However, the recovery has been fraught with the supply chain issues ranging from staffing shortages to hurricane-related weather disruptions. That has compounded complications even as customers have shown a willingness to keep shopping, the report stated.
The news also comes as both J.P. Morgan and Wells have reported subdued demands for loans, with both an increase in government checks as well as more savings having contributed to changes in the landscape, according to the report.
The banks said the loan decline had been tapering off as of late, although it could still be sometime in 2022 before things are fully normal again, the report stated.
J.P. Morgan Chase also made headlines earlier this month when it acquired The Infatuation, the owner of restaurant review guide Zagat.
The Infatuation has been able to make a name for itself lately, growing beyond its former status as a mostly New York-focused blog.
Once the deal is done, J.P. Morgan Chase is likely to integrate The Infatuation into its existing restaurant products, including a dining hub in partnership with reservation platform Tock.