U.S. consumer is soldiering on despite soaring inflation and recession risk, credit card giants say

U.S. consumers person demonstrated a willingness to proceed to wage higher prices successful the look of a sluggish system that could beryllium tipped into a recession, according to recognition paper giants American Express and Bank of America.

American Express connected Friday reported stronger-than-expected third-quarter net and revenue, portion raising its full-year forecast. The institution said wide lawsuit spending jumped 21%, driven by maturation successful goods and services arsenic good arsenic question and entertainment.

The request for question is peculiarly resilient arsenic Americans marque up for postponed trips owed to the pandemic. Consumers are besides splashing retired connected nutrient and amusement aft pandemic lockdowns eased.

American Express said its question and amusement conception saw spending ascent 57% from a twelvemonth agone with volumes successful its planetary markets surpassing pre-pandemic levels for the archetypal clip successful the 3rd quarter.

"Card subordinate spending remained astatine near-record levels successful the quarter," American Express CEO Stephen Squeri said Friday connected an net call. "We expected the betterment successful question spending to beryllium a tailwind for us, but the spot of the rebound has exceeded our expectations passim the year."

Bank of America isn't experiencing immoderate slower maturation successful spending either contempt ostentation having reached historical highs. CEO Brian Moynihan said earlier this week that the bank's customers proceed to walk freely, utilizing their recognition cards and different outgo methods for 10% much transaction measurement successful September and the archetypal fractional of October than a twelvemonth earlier.

"Analysts mightiness wonderment whether the speech of inflation, recession and different factors could [result] successful a slower spending growth," Moynihan said Monday during a league call. "We conscionable don't spot [that] present astatine Bank of America."

Recent economical data, though, person shown signs of stagnation successful user spending. Retail and nutrient services income were small changed for September aft rising 0.4% successful August, according to the beforehand estimate from the Commerce Department.

Consumers mightiness person started to turn guarded astir splurging arsenic prices moved sharply higher and the Federal Reserve raised involvement rates to dilatory the economy.

— CNBC's Hugh Son and Jeff Cox contributed reporting.