ST. PETERSBURG, Fla.— Consumer spending in October continued to show steady growth even as consumer sentiment fell to lows not seen since 2022, with debit purchases rising 6.4%, according to the November Velera Payments Index.
The report covers a number of spending and economic-related developments, and also revisits an earlier Deep Dive into the Money Services sector. In addition, it tracks the start of the holiday spending season launched by early October sales at Amazon, Walmart and Target.
Consumer Sentiment Declines
Velera noted the University of Michigan Index of Consumer Sentimentdropped 3.3 points in October to 50.3, a 6% decline tied to shutdown effects and concerns about personal finances and worsening business conditions.
The Consumer Confidence Index slipped one point to 94.6. Confidence eased slightly for those under 35 and those over 55, but strengthened among people ages 35 to 55. By income, confidence rose among households earning more than $75,000 a year and fell for those earning less, Velera stated.
Shift Takes Place
“The rapid rise of Money Services, driven by peer-to-peer platforms and emerging fintech solutions, underscores a collective shift from cash to digital payments,” Jon Budd, CEO of Juniper Payments, said in a statement included as part of the report. “But it’s the accelerating shift from dollars in checking accounts to dollars in digital wallets that highlights a major change in how consumers move and store money, even if temporarily. Consumers expect convenience, immediacy and control — and instant, secure access to their funds. While this may seem daunting, credit unions are more than capable of delivering on these expectations, even if incrementally. The shift is not about technology alone — it’s about meeting members where they already are.”
The Key Takeaways
According to Velera, key takeaways in its latest report include:
Key takeaways for October include:
- Consumer sentiment weakened, but purchasing activity held steady. Debit purchases rose 6.4%, driven largely by Money Services and Goods, which accounted for two-thirds of the increase. Credit purchases grew 1.7%, with Goods, Services and Restaurants making up 94% of the overall rise. Gasoline and travel sectors posted modest declines. Debit transactions increased 3.9% and credit transactions rose 1.6%.
- Money Services—primarily peer-to-peer transactions—remained the largest contributor to debit-purchase growth, accounting for 13% of all debit card spending. Roughly two-thirds of this activity involved P2P payments, with the remainder tied to buy now/pay later and cryptocurrency activity.
- The October ADP private-sector jobs report showed a 42,000-job gain, outperforming expectations by about 20,000. The next BLS report is expected Dec. 5.
The full Velera Payments Index is available for download here.
