One of the largest credit card companies in the world stated recently that total spending had increased, according to an earnings report.
American Express stated that the average spending per card holder had increased 8 percent, with more people using the merchant services to purchase goods and services. InvestorPlace contributor Lawrence Meyers said that the news pointed to the fact that the company’s clients were able to spend more due to higher personal earnings.
“For Amex’s demographic, which tends to be wealthier than holders of other cards, that means folks in the higher-income brackets were comfortable spending their money again following the financial crisis,” he writes.
He went on to write that other high-end brands such as Tiffany & Co., which specializes in expensive jewelry, has also made significant progress as of late.
Amex made other news recently when it reported stronger earnings during the fourth quarter of 2011. The company stated that profits had increased 12 percent during the time period, despite the fact that many are still struggling as a result of the economic slowdown.Back To Blog