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Bank executives said that US consumer spending is still higher than pre-pandemic levels, indicating that shoppers are getting rid of concerns about Delta variants to continue to drive economic recovery.
At JP Morgan Chase, the largest bank in the United States, debit and credit card spending is still 18% to 19% higher than 2019 levels, Consumer and Community Banking Head Marian Lake told investors at an industry event on Tuesday .
Lake said that consumer spending accelerated in 2021 after reaching a low point at the end of last year, and “this advantage has been with us throughout the summer and when we sit here today”-despite the slowdown in spending in the tourism and accommodation sectors .
Mike Santomassimo, Chief Financial Officer of Wells Fargo Bank, responded to her comments.
“Although the Delta variant makes noise, you will still see [the economic recovery] Keep going,” Santo Massimo said, referring to higher debit and credit card spending.
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He said that in the past few weeks, certain categories that are particularly sensitive to the pandemic (such as travel) have begun to decline, but in general “people are spending there.”
The optimistic comments made at the Barclays Financial Services Conference are wider Worry Within American companies, the failure to control Covid-19 has forced some companies to reformulate their plans and revise their forecasts.
After the coronavirus pandemic, business leaders have pinned their hopes on American consumers to promote global economic recovery. However, supply chain issues ranging from staff shortages to hurricane-related outages make it more difficult for companies to deliver goods and services, even if consumers are free from the lockdown and are ready to consume.
However, JPMorgan Chase and Wells said that the demand for loans is still sluggish, and this area concern Due to government stimulus checks, increased personal savings and increased corporate cash reserves, this year for banks. The bank said that the decline in loan demand after the pandemic declined has stabilized, although Lake said it may not return to normal until 2022.