Affluent card members at American Express show most signs of lowering spending, while younger customers accelerated trading volume growth in the first quarter, Chief Financial Officer Christophe Le Cailec told CNBC.
According to Le Cailec, the company reports that Amex Card billed businesses rose 6% over the period and 7% in line with the impact of Leap Year.
These trends continued into April, the CFO said despite a sharp decline in stocks this month amid concerns that President Donald Trump’s tariff policies would cause a recession.
The dynamics that Amex supported its highest expectations for first quarter profits show that its wealthy customer base could help its quarantine it from concerns about tariffs and stubborn inflation. At the other end of the credit spectrum, Synchrony Financial, which offers store cards for a number of popular retailers, warns of slower spending.
“There’s a lot of stability and strength despite the news and the environment,” said Le Cailec.
Growth at AMEX comes from younger cardholders, with millennials and Gen Z members spending more than 14% this quarter. Gen X and Baby Boomer cardholders showed more attention, recording an increase of 5% and 1%, respectively.
Le Cailec said, as JPMorgan executives said last week, it would be difficult to tell if cardholders are purchasing because of the looming tariffs. However, some small businesses may be doing so to build inventory due to concerns about rising costs, he added.
Airline Slump
In particular, one category gave Le Cailec confidence that spending trends might be durable.
“Restaurants’ spending has risen by 8%,” the CFO said. “This is the ultimate discretionary expense and not something you can move forward, so it’s a good indicator of the strength of the card member base and the confidence they have.”
According to the company’s revenue presentation, if there were weak areas other than slowing spending from older Americans, it was in airline trading. This category rose 13% in the fourth quarter, then only 3%, or 4%, when adjusted for LEAP years.
However, airlines, retailers and other companies were drawing revenue guidance on tariff uncertainty, while Amex held the company.
This has maintained revenue growth guidance of $15 to $15.50 per share this year, with $15.50 to $15.50.
However, the company’s presentation added new warnings to the guidance. It is the subject of the macroeconomic environment.
