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American Express Wealthy cardholders were once again free to spend more freely late last year Christophe le Caillec told CNBC.
According to the company’s data income Promotional meeting.
While year-end pickup was seen across all customer segments and geographies, it was particularly driven by Millennials and Gen Z users, where transaction volume increased 16%, up from 12% in the third quarter.
Older groups are more constrained by their cards. Gen X customers spent 7% more in the fourth quarter, while baby boomers saw billings grow just 4%.
“We have very strong growth from Gen Z and Millennials, and this 2 percentage point acceleration makes us very optimistic about 2025,” Le Caillec said.
He added that elevated trading levels continued into the first three weeks of the year.
Young Americans are said to be spending more on experiences rather than goods, which is reflected in Amex’s results, which join rival card issuers JPMorgan Chase Dominate the high-end credit card market.
Travel and entertainment bills grew 11% in the quarter, while goods and services grew 8%. The lift in travel came from air spending, which rose 13%, with spending on business class and first-class tickets up 19%, according to Le Caillec.
Amex shares were down more than 2% in midday trading on Friday after the company Report Earnings and revenue were broadly in line with analysts’ expectations. The New York-based company’s stock has been on a tear over the past year, reaching a 52-week high on Thursday.
“We are encouraged by accelerating bill growth as we believe this will be AMEX achieving at least 10% of its growth,” William Blair analysts led by Christopher Kennedy wrote in a research note on Friday. Key factor in revenue growth target ” “We remain a buyer on any pullback. ”
