Spending on Chase Cards Shows Recovery May Be Stalling
The coronavirus pandemic caused havoc on the economy starting back in March. Since then, things have gotten better, but some recent numbers from Chase show that the recovery might be stalling, at least when it comes to spending on consumer cards.
The data was disclosed by JPMorgan research in a note to clients and reported by CNBC. It measures the use of select Chase credit and debit cards, and shows that spending has been roughly 10% or more below its 2019 levels over the last month. The recovery was sharp initially, after its low point in late-March and early April when spending was down 40%.
Spending habits show an increase year-over-year for supermarkets and wholesale retailers. On the other hand, there’s a sharp drop for spending at restaurants, gas stations, lodging and airlines. Age also played a role in spending during the pandemic. Data shows that spending by millennials and gen-z consumers was down 4.1% relative to last year, while baby boomers were spending 18% less year-over-year.
The slowdown in recovery lines up with new worries about the virus, as many cities and states reissued some restrictions or delayed reopening after spikes in cases of Covid-19. There are now 4.89M confirmed cases in the country, and a a total of 160K deaths, according to data from Johns Hopkins University.