American Express reported a 15% increase in US card billed business over the same quarter a year prior. This has to be good news that the economy is starting to generate some steam. Some economists are predicting a double dip recession so it remains to be seen but any news that shows growth has to be a reason for hope.
Credit card processing companies in general seem to be seeing more volume from 2010. If the volume increase is due to a substantial increase in the amount used on credit cards as opposed to debit cards it could indicate consumers are still struggling and using credit cards to finance their expenses that normally would be paid with debit. This could be tempered if the cards are paid off each month as some analysts have suggested. As more data comes in we will be able to tell what the credit card processing companies results are telling us.
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