The latest American Bankers Association (ABA) Credit Card Market Monitor maintains consumers continued to manage their credit well despite slowed economic growth in the second quarter of this year.
“The Monitor indicates that consumer credit card use is continuing to normalize,” ABA Chief Economist Sayee Srinivasan said. “Rising interest rates and high inflation are putting pressure on consumer finances, but the labor market remains strong, and consumer spending is holding up. Our data suggest that many consumers were in a position of strength as the first half of the year came to a close.”
Per the ABA, report data is taken from a nationally representative sample provided by Verisk Financial | Argus.
The December 2022 Monitor reflects credit card data from April to June 2022. The analysis showed real monthly purchase volumes rose 4 to 8 percent across risk tiers in comparison to the previous quarter, while on an annual basis, real monthly purchase volumes increased 7 to 11 percent across risk tiers.
According to the ABA, the report points to consumer credit availability remaining strong, determining the total number of accounts increased by 5 percent on an annual basis; the share of super-prime accounts remains near a record high, with the share of prime accounts at an all-time low; and new account creation has nearly returned to pre-pandemic levels – rising 19 percent on an annual basis in the second quarter via subprime account openings.