Thursday, February 2, 2023

ABA report: Credit card market remains strong

Consumers continued to manage their credit well despite economic headwinds in the second quarter of 2022, according to the American Bankers Association’s latest Credit Card Market Monitor.

The report found that credit card credit outstanding as a share of disposable income remained well below pre-pandemic levels in the second quarter while inflation-adjusted monthly credit card purchase volumes increased across risk tiers (prime, subprime, and super-prime), reflecting solid consumer spending earlier this year.

The December 2022 Monitor, which reflects credit card data from April to June 2022, shows that real monthly purchase volumes* increased 4–8% across risk tiers compared to the previous quarter. On an annual basis, real monthly purchase volumes increased 7–11% across risk tiers. Meanwhile, credit card credit outstanding as a share of disposable income* continued to normalize in the second quarter, though the second quarter reading of 4.8% remains well below average 2019 levels of 5.4%.