Credit union members continued to increase their spending by credit and debit cards in August, but the 12-month gains were lower than in previous months, according to a report Friday from the nation’s largest payments CUSO.
Velera’s monthly Payments Index showed spending rose 1.9% by credit and rose 5.3% by debit from a year earlier. In July, spending rose 1.6% by credit and 6.2% by debit.
As usual, August’s numbers bracketed the Census Bureau’s report of a 3.6% gain in retail spending, excluding automobiles and parts. Like Velera’s numbers, the Census numbers used here are unadjusted for seasonal patterns.
Velera’s spending gains also bracketed the 12-month inflation rate of 2.9% in the Consumer Price Index (CPI).
Norm Patrick, vice president at Velera’s Advisors Plus Consulting, said debit and credit activity showed modest gains overall in August, but travel purchases continued to decline for the second consecutive year, with Airlines and Lodging leading the pullback.
Year-to-date credit purchases in the Travel sector were down 4.7% and debit purchases were down 1.5%.
“As inflation persists and job growth slows, we’re seeing a clear shift in how consumers prioritize spending — especially in discretionary categories like travel,” Patrick said. “These patterns reflect growing caution among consumers navigating higher prices and economic uncertainty.”
For credit cards, spending on goods accounted for 45% of transaction growth. Spending in that category was up 3% from a year earlier.
The second-largest contributor was restaurants, responsible for 27% of growth in both spending and the number of transactions. Overall, restaurant spending rose 5%, led by a 7.2% gain in fast-food spending.
Debit spending followed a similar pattern with goods accounting for 40% of purchase growth and 39% of transaction growth. Goods spending grew 8% from a year earlier. Restaurant spending, the No. 2 contributor, grew 7%.
Velera bases its Payments Index on data from credit unions that have been processing payments with it since January 2023. This month’s report encompassed 3.5 billion transactions valued at $177 billion of credit and debit card activity in the 12 months ending Aug. 31.
Contact Jim DuPlessis at JDuPlessis@cutimes.com.
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