Bank / Credit Union

JPMorgan credit card holders reduced spending due to pandemic

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May 14, 2020

The coronavirus pandemic is responsible for why this past March and April, JP Morgan Chase & Co's U.S. credit card holders spent 40% less on non-essential goods and services such as entertainment, eating out and retail shopping compared to last year, according to a report from Reuters.

Analyzing spend data from more than 8 million anonymous Chase credit card customers from March 1 to April 11, the JPMorgan Chase Institute reported that Chase credit card holders who reported household incomes of less than $26,000 reduced spending by 38%, while wealthier cardholders with incomes of more than $95,000, reduced spending by 46%. Essential spending on groceries and healthcare initially spiked by 20% before falling back. Spending on non-essential things fell by 50% and spend on restaurants dropped 70%.

Diana Farrell, president and chief executive of JPMorgan Chase, Institute said the deficit had more to due with the stay-at-home orders throughout the U.S. and less to do with job loss.

"While surprising, we expect this may change over time as layoffs, furloughs and unemployment insurance further impact families' bank accounts," Farrell said in a statement.

The group tracked only spending on Chase credit cards.  

For more information on how the coronavirus has affected the ATM industry, click here.