Saturday, March 25, 2023

A change in trend: consumption with credit cards falls sharply in February

Credit card operations reached $2,322,124 million in February, which represents an increase of only 1.4% compared to the previous month, below expected inflation.

According to a report published today by Primo Capital Group (FCG), credit card operations reached $2,322,124 million in February, which is an increase of only 1.4% compared to the previous month, about $33,158. represents an increase of 1 million above January and below expectations. The year’s growth reached 82.6%, and in this case it did not reach the growth of the season either, resulting in a drop in the portfolio in real terms.

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The drop in books is even more significant if one considers that the month of February is usually the month with the most important expenditure due to the start of the academic year and the purchases that this brings with it. “We are in the presence of a significant drop in the balance of this financing item. February must be the month in which the limits of credits have escaped more because the increases equal to the payments have not yet been found in the salary receipts and because the banks do not put the review of the machines themselves”, explained Guillermo Barbero; PRIMARY PARTNERS CAPITALS GROUPS.

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Inflation has reached its limits

However, the financing balances in this category are very low, which indicates that the credit limits have not yet been updated to reflect the increase in wages and accelerated growth. ¨ The acceleration of the rate of inflation makes it necessary to renew the credit limits more frequently. level cardholders spend. It is clear that the beginning of the school period, and the purchases that it causes, are not reflected in the increase in the balance of major importance”, he affirmed.

Regarding the use of credit cards for purchases in dollars, in February they registered an interannual rise of 17.2%, despite the irregular monthly trend. In February there was a 12.3% increase compared to the previous month. ¨Travel abroad brought back this item, but the application of differential exchange rates for the use of cards in foreign currencies limits their use and today at values ​​well below the usual values ​​in pre-pandemic times¨ he concluded. .

Nation World News Desk
Nation World News Desk
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