JPMorgan Says Coronavirus Sent Credit Card Spending Down 40%
May 14 2020 - 1:00PM
Dow Jones News
By David Benoit
Spending on JPMorgan Chase & Co. credit cards plunged 40%
for the average U.S. family at the start of the coronavirus
slowdown, an "enormous" drop that sheds new light on how ugly
consumer spending will be for the economy.
In particular, consumers cut non-essential spending in half,
including a 70% decline in restaurant spending, according to the
report from the bank's internal think tank. The declines were seen
across income levels and employment situations, and actually larger
for higher-income households.
"The magnitude of the spending drop is enormous," the report
from the JPMorgan Chase Institute said.
The group said spending held mostly stable through half of March
before falling dramatically when governments began issuing
stay-at-home orders. It appeared to stabilize at the low levels in
the middle of April.
The average spending per household was down $300 in early April
from the year before.
The data may be brighter than the broader economy. While the
study included 8 million households of active card users, JPMorgan
card holders skew more affluent than the broader population.
Write to David Benoit at david.benoit@wsj.com
(END) Dow Jones Newswires
May 14, 2020 12:45 ET (16:45 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Aug 2024 to Sep 2024
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Sep 2023 to Sep 2024