Today, PSCU – the nation’s premier payments credit union service organization (CUSO) – published the September edition of the PSCU Payments Index, the goal of which is to provide information and insights to help financial institutions make informed, strategic decisions on the road ahead. It’s back to school time again, as students of all ages have returned to classrooms throughout the country. And morning traffic is not the only thing that’s increased as a result, with consumer purchasing activity showing strength in both credit card and debit card volume in August. In our September 2022 edition of the PSCU Payments Index, we take our second annual Deep Dive into back-to-school purchasing. In the Labor Department’s September 13 update, the Consumer Price Index (CPI) was up 0.1% for the month of August, bringing the 12-month rate of inflation to 8.3%. Increases in shelter, food, medical care, electricity and natural gas were largely offset by a 10.6% decrease in the gasoline index. The Bureau of Labor Statistics (BLS) reported the August 2022 unemployment rate rose to 3.7%, with the number of unemployed increasing by 344,000 to 6.0 million. The Federal Reserve will meet on September 20-21 and is expected to announce an additional 0.75% interest rate hike to help curb inflation, which, if materialized, would be the third consecutive 75-basis-point increase. The Consumer Confidence Index increased in August following three consecutive months of declines, now at 103.2 (1985=100). While both purchasing intentions and vacation intentions increased for the month, high inflation and interest rate actions by the Fed continue to pose short-term risks to economic growth. The average national gasoline price dropped to $3.75 per gallon on September 5, down $1.26 per gallon or 25% from the peak in June 2022. Current per-gallon prices are up 18%, or $0.57, from a year ago. “August saw strengthening of spend on both credit and debit cards, including those merchant categories included in our Deep Dive on back-to-school spending this month,” said Tom Bennett, principal, Advisors Plus at PSCU. “Credit is performing extremely well, with nearly every merchant category experiencing double-digit growth. While debit growth was more subdued, there is notable growth in the newer methods of payments like contactless – more than one in four eligible debit transactions are now tapped – and the variety of Card Not Present (CNP) alternatives, where almost one out of every two dollars spend is CNP.” A sampling of key takeaways from the September report includes:
The full report is available for download here or can be shared as a PDF upon request. Additionally, feel free to subscribe here to receive updates when the PSCU Payments Index is published each month.
0 Comments
Leave a Reply. |
Author: Mike LawsonMarried to a most gorgeous and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple. Archives
May 2024
Categories |