Velera: Card Spending Hits Fastest Pace In Nearly Four Years
By CU Today Staff —
TAMPA--Debit and credit card spending accelerated to its fastest pace in nearly four years during June, led by purchases of goods and essential expenses, according to the latest Velera Payments Index, underscoring the resilience of consumer payments activity even as financial pressures persist.
"Consumer spending remains resilient and is expected to stay strong, yet inflation-adjusted growth has been modest,” said Ryan Myers, SVP, Advisors Plus, Velera. “This mix of spending is shifting toward essential expenses such as gas, energy, housing, goods and healthcare while reducing discretionary spending on categories like travel. Consumers expect inflation to remain elevated, which drives them to make purchases ahead of anticipated increases and actively seek value and discounts. Amazon Prime Day was a great demonstration: U.S. online sales reached a record $26.4 billion, up 9.3% year over year, yet average household spending fell 9%, and most purchases were apparel and household essentials.”
Key takeaways for June include:
· June year-over-year growth in transactions and purchases were the strongest since 2022 for both credit and debit card activity. Debit purchases increased by 8.8%, with the Money Services and Goods sectors accounting for over 60% of the June growth. Credit purchases were up 7%, with the Goods sector accounting for over 40% of the increase. In June, debit and credit transactions each were up 5.4%.
· The Consumer Price Index fell more than WSJ industry analysts expected, down 0.4% in June, taking the 12-month inflation rate to 3.5%. This was the largest single-month reduction in the CPI since April 2020. Lower gasoline prices were the primary driver, offsetting increases in shelter and food for the month. Core CPI was unchanged at 2.6% for June.
· While gasoline prices have come down from their May 2026 peak of $4.50/gallon, they remain 21% (or $0.65/gallon) higher than one year ago. The resurgence of tensions with Iran may see crude oil prices increase again in the coming weeks. The increase in gasoline purchases, for both credit and debit, each accounted for 15% of the overall increase.
The full report is available for download here.
Originally reported by CU Today.