Finance & Lending

 

07 23 2013

07 23 2013

As Credit Card Spending Rises, So Does Consumer Confidence

According to figures released by the Federal Reserve, credit debt increased in May, a sign that consumer confidence and credit card spending may continue to rise. In May, overall American credit soared to $19.6 billion, a huge leap from April’s $10.9 billion.

The 8.3 percent gain in credit debt was the most significant since a 9 percent monthly increase in May 2012. Perhaps most importantly, the national amount of revolving credit is building. Revolving credit – namely acquired through credit card use – has been slow to make gains since the recession. In May, though, revolving credit rose to $856.5 billion, up from $849.9 billion in April, a 9.3 percent annualized increase.

After years of slow growth in credit spending, May’s improvements have given a new sense of optimism to both economists and consumers alike. Consumers are becoming less afraid to run up balances on credit cards, probably due to increased job security – May also saw a revised 195,000 new jobs added to the economy, which is likely a contributor to higher credit spending.

The Conference Board’s Consumer Confidence Index is on the rise, too. The index reported consumer confidence reached 81.4 in June, up from 73.4 in May, pointing to more widespread shopping and a willingness to take on debt.

With such a large increase in credit card spending in combination with improving confidence levels, many small businesses may be hoping to expand. As the market improves and more Americans feel secure in their jobs, spending will likely continue to increase.

If a small business owner wants to tap into the credit market, they can come to National Funding for their business credit card processing needs. National Funding can provide guidance to individuals on getting a small business loan and can give a small business owner an extra financial boost.

Featured


  • Get your brand on mobile devices

    3 Ways to Get Your Brand On Customers Mobile Devices

    Everywhere you look, you're bound to see someone scrolling through newsfeeds, messages or even news articles on their mobile devices. Smartphones are no longer considered so much a luxury as they are a necessity. In the U.S., 72 percent of the population reports owning a smartphone, according to a survey conducted by the Pew Research… […]

  • Alternative lending benefits small businesses

    3 Alternative Lending Situations That Benefit Small Businesses

    Businesses strive to be different from one another. Whether its your products, your customer service or your convenience, you have at least one feature that's your differentiator. But no matter how hard you try, there'll always be one thing every business has in common: A need for money. Cash is the lifeblood that powers your… […]

  • 3 Reasons Why A Small Business Loan Is Good For Your Business

    There's one fact of business that no small business owner can deny: Money is essential to stay operational. For business leaders who may be short on funds or in need of money to help invest in future growth for their company, a small business loan can provide the cash needed to get ahead. Many business… […]

  • Tech's biggest leaders can help small business owners

    What Small Businesses Can Learn From Large Tech Innovators

    What do innovators and leaders in the world of technology have in common with your business? Your immediate answer might be "not much" - these innovators lead especially large companies focusing heavily on research and experimentation with lots of outside funding, after all. However, a closer look reveals plenty of similarities between these entrepreneurs and… […]