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More consumers appear to be keeping their credit cards in their wallets when they shop. Credit union service organization PSCU says its data show that overall credit card spend among consumers who use credit and debit cards issued by credit unions working with PSCU is down 29.3% for the week ending April 5, compared to the week ending April 7, 2019. By contrast, debit card spending is down 12.1%.
Spending was down more in states hit hardest by the pandemic, which includes California, Connecticut, Washington, D.C., Illinois, Louisiana, Minnesota, New Jersey, and New York. In these states, credit card spending was down 32.1% last week and debit card spending was down 15.2%. St. Petersburg, Fla.-based PSCU released the data as part of a new weekly report tracking transaction trends during the Covid-19 outbreak. The data is based on same-store sales.
Spend was down less—though not much less— in the eight states with no shelter-at-home orders. Credit card spend was down 27.5% and debit card spend was down 13.2%.
Other insights indicate that grocery stores and supermarkets continue to experience more spending volume. PSCU’s data shows a 27.8% increase for credit card volume and a 16.9% increase for debit card spending at these store.
Meanwhile, spending among drug stores and pharmacies is softening a bit. Credit card spend was down 5.3% and debit card spend was down 6%. “This is most likely an indication that short-term demand will be soft given recent consumer stockpiling,” PSCU says.
Spending on consumer goods also was down from last year, with a 15.8% drop for credit cards and an 11.7% decrease for debit cards. With millions not making their regular work commutes and shopping trips, and avoiding various events, fuel purchasing is down drastically. PSCU says there was a 55.5% drop for credit card spending for gas and a 40.6% drop for debit cards.
