Major Credit Card Provider Warns US Consumers Are Spending Less

According to the largest provider of private-label credit cards in the U.S., consumers — pressured by years of persistent inflation — are reducing spending as the economic outlook worsens.

What To Know: Synchrony Financial's (NYSE:SYF) chief credit officer Max Axler told Reuters that while most borrowers continue repaying loans, spending has dipped across income levels. 

“Purchase volumes have gone down across the industry as consumers across all income groups become more thoughtful about spending,” Axler said.

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The latest data released by the Consumer Confidence Board on Tuesday showed that pessimism about the economic future is gripping American consumers. The Consumer Confidence Index fell 7.2 points in March to 92.9, its fourth consecutive monthly decline and the lowest reading since late 2022. 

According to recent Federal Reserve data, delinquencies on auto loans, credit cards, and home credit lines have increased, and economists warn that President Donald Trump's tariffs may exacerbate price pressures. 

Consumers may soon face additional financial strain as student loan servicers resume reporting delinquencies to credit bureaus. The process, which began in mid-February 2025, could worsen already stretched household finances.

“For the first time in five years, federal student loan delinquencies will start to reappear on credit files, and we expect a lot of consumers to be stretched due to this,” Rikard Bandebo, chief economist at VantageScore, told Reuters. 

“We expect delinquencies to go up as a result of it at a time when consumer debt is already high,” Bandebo added.

Concerns about consumer strength have also weighed on financial stocks. Shares of Discover Financial Services (NYSE:DFS) have shed nearly 10% over the past month, and Capital One Financial Corp. (NYSE:COF) are down 6% over the same period.

The SPDR Select Financial Sector Fund (NYSE:XLF), which holds 73 large-cap financial stocks, has dipped 1% over the past 30 days on broad consumer spending concerns. 

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