Key Takeaways:

While consumer sentiment declined, growth in actual purchasing activity remained consistent in October. Debit purchases increased by 6.4%, with the Money Services and Goods sectors accounting for two-thirds of the growth. Credit purchases were up 1.7%, with the Goods, Services and Restaurant sectors accounting for 94% of the entire increase.
Money Services, mainly comprising P2P payments, continued to be the largest contributor to growth in debit purchases, representing 13% of overall debit card purchases.
The holiday spending season kicked off in October with the expected annual sales from the three largest retailers. Amazon’s sale yielded the largest year-over-year growth, followed by Walmart and Target.
With the last FOMC of 2025 concluding on Dec. 10, there may be time for scheduled published economic data to be delivered in late November and early December. While the Fed hinted at a possible rate reduction, Chair Jerome Powell also cited differing views among the committee's voting members following the last meeting in October.
In October, the ADP private-sector jobs report showed an increase in U.S. private employment jobs of 42,000, beating the expected Dow Jones forecast by roughly 20,000 jobs. The next BLS report is scheduled for release on Dec. 5.

What Credit Unions Should Do Now:

To help credit unions protect interchange income and maintain their role as members’ primary financial institution, embedding peer-to-peer (P2P) payments functionality directly within the credit union’s digital banking applications is essential. This integration keeps transactions within the credit union’s ecosystem, driving frequent engagement and reinforcing member loyalty.
Credit unions should implement journey campaigns as part of a comprehensive strategy to deliver consistent, targeted outreach and maximize portfolio performance. Expand credit and debit portfolios by driving activation, usage and retention through personalized, data-driven engagement.
Offering a post-holiday Skip-a-Pay empowers credit unions to deliver timely financial relief while unlocking strategic benefits across member engagement, retention and revenue. By allowing eligible members to defer a credit card or loan payment during high-expense periods, Skip-a-Pay demonstrates member-focused support and flexibility, fostering trust and loyalty.