Pessimism about the economy has been on the rise due to surging inflation and falling household income since pandemic-related stimulus programs expired. But the latest round of bank earnings shows that apprehension hasn’t kept Americans from reaching for their credit cards, the Wall Street Journal reported. First-quarter spending was up 23% on Citigroup Inc. credit cards, compared with a year ago. Spending rose 29% on JPMorgan Chase & Co. cards and 33% on Wells Fargo & Co. cards. Bank of America Corp., another big card issuer, is scheduled to report first-quarter results Monday. Consumers are sending mixed signals about their confidence in the economy, Goldman Sachs Group Inc. Chief Executive David Solomon said Thursday. In some ways, the quarter was a return to prepandemic buying habits: At JPMorgan, spending totaled $236.4 billion, 37% higher than in the first quarter of 2019 and up 59% from its 2020 nadir. Bank executives pointed to higher spending on categories like travel, entertainment and dining as evidence of consumer strength. On Chase cards, travel and dining spending on rose 64% in the first quarter.
