HomeTop U.S. NewsDiscover Credit Card Spending Shrinks Amid Inflation

Discover Credit Card Spending Shrinks Amid Inflation

Discover Financial Services confirmed that spending on its credit cards has slowed down in recent months as inflation hits a 40-year high and signs of an impending recession continue to emerge.

Chief Executive Officer Roger Hochschild stated during a television interview on Tuesday that credit card spending grew by 9% in November. This is a slowdown in growth compared to the 11% rise experienced in October, which in turn is a decline from September’s 14% increase.

“The consumer is hanging in there,” Hochschild commented with regard to the inflation-induced rise in the cost of living. “We are coming off unbelievably robust levels of consumer spending.”

Bank of America CEO Brian Moynihan agreed with this sentiment, revealing that his bank is seeing signs of consumer weakness as spending continues to slow down. Spending rose by 5% in November; a slower growth rate than in previous months.

The bank’s sales and trading business is expected to be up between 10% to 15% in November, while traditional investment-banking fees are down 50% to 60%.

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