Citigroup reveals that “US consumers” behavior has changed, buying only when necessary, dragging down card spending by 3.5-4%

Citigroup reveals that “US consumers” behavior has changed, buying only when necessary, dragging down card spending by 3.5-4% and 5.75-6.25% in the retail service business.

On September 10, 2567, Bloomberg News reported that Mark Mason, Chief Financial Officer of Citigroup Inc., stated at a conference hosted by Barclays Plc that U.S. consumers were shifting towards purchasing more essential goods and fewer non-essential items.

“The nature of spending is changing. Spending is shifting from discretionary to more essential.”

This has resulted in Citigroup losing more credit in its credit card business and a slight decline in payment rates, which is currently within the scope of what the company has been discussing previously. Meanwhile, wealthier customers are driving the majority of spending growth.

Investors are closely watching consumer spending as it gauges when the Federal Reserve will decide to cut interest rates. A weakening labor market and falling inflation have fueled expectations that the central bank will cut rates later this month to boost spending.

Mark Mason said that , considering the full year, credit losses appear to be around 3.5% to 4% in the credit card business and 5.75% to 6.25% in the retail services business.

Citigroup continues to see good growth in debt capital markets and M&A, while equity capital markets are under some pressure. Investment banking fees for the third quarter are likely to increase by about 3% year-on-year, below the median estimate of 20% from a Bloomberg survey.

Citigroup shares fell 0.4% to $58.88 as of 11.47:XNUMX a.m. in New York.

Reference: bloomberg.com

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