Credit, debit card spending continues to falter: PSCU
Credit and debit card spending continues to falter as consumers remain at home because of the coronavirus pandemic.
Overall debit card spending was down almost 12% while credit card purchases fell around 32% for the week that ended on April 12, compared with the week that ended on April 14, 2019, according to a report from the credit union service organization PSCU on Monday.
Officials across the country have ordered non-essential businesses to close and residents to stay home. Credit card spending in the eight states without stay-at-home orders fell slightly less at 29.5% than the overall numbers, according to the payments credit union service organization. Debit card purchases were in line in these states with the overall total.
In contrast, the areas hardest hit by the outbreak saw an even greater decline in spending. Credit card spending was down by more than 34% and debit card usage declined by over 14% in California, Connecticut, Illinois, Washington, D.C., Louisiana, Michigan, New Jersey and New York, according to the report. There have been more than 460,000 coronavirus cases reported in those areas, according to data from the Centers for Disease Control.
Gas purchases and spending on consumer goods continues to be bleak. Even with gas prices at lows not seen in years, credit card spending for gas was down almost 59% and about 16% for consumer goods. Debit card purchases for gas declined almost 43% and more than 7% for consumer goods.
Grocery stores and supermarkets continued to have elevated spending. Credit card purchases at these stores were up about 21% while debit increased more than 17%.