Key Takeaways:

Growth picked up for debit and remained slow for credit in July. Debit purchases were up 6.2%, with the Goods and Money sectors contributing more than two-thirds of growth. Credit purchases were up 1.6%, with the Goods and Services sectors accounting for the entire increase. Insurance premiums continued to drive growth in the Services sector. For July, debit transactions were up 4.1% and credit transactions were up 1.6%.
The 12-month cumulative CPI through July remained the same at 2.7%, with a 0.2% increase in July. Core inflation was up 0.3% at 3.1% for July. The Core CPI results showed more inflationary pressures, including goods stemming from tariffs.
There are signs of shifting consumer spending, influenced by the economic uncertainty in the market. Debit activity continued to drive consumer spending across the Goods sector for most merchants, with large retailers, wholesale clubs and automotive sales showing the most notable growth.

What Credit Unions Should Do Now:

Get your credit and debit card holiday marketing strategy in motion. As the holiday season approaches, it is imperative to implement targeted campaigns that foster member engagement and drive portfolio growth.
Reinvigorate efforts to grow membership. With everyday expenses on the rise, consumers are actively seeking financial solutions that offer greater value. Credit unions are well-positioned to meet this need, providing more affordable borrowing options and competitive rates on savings products.
Implement early outreach strategies to identify and connect with members facing emerging financial difficulties. Establish policies and procedures for loan modifications and other assistance programs to provide timely support. Utilize digital to effectively communicate available resources and encourage member engagement.