Credit union service organization PSCU has updated its weekly transaction analysis from Owner credit union members to reflect the impact of the coronavirus, finding that credit spending overall was down 32 percent while debit spending was down 11 percent.
The union said in a release that the eight states without stay-at-home orders had seen credit spending declines of 29.5 percent and debit declines of 11.7 percent, mostly mimicking the national overall rates.
The states hardest hit by the pandemic were down by slightly more, seeing a 34.4 percent drop for credit spending and a 14.6 percent drop for debit. Those states include California, Connecticut, Washington DC, Illinois, Louisiana, Michigan, New Jersey and New York.
Grocery stores and supermarkets, as essential businesses necessary for people to keep buying food and other necessities, have seen an uptick rare among the various categories. They’ve seen a rise in spending of 21.1 percent for credit and 17.3 percent for debit, which is higher even than the slight rise from right before the pandemic, which were only single-digit jumps.
For drug stores and pharmacies, credit spending has slumped 7.5 percent while debit spending has risen by 1 percent, indicating to PSCU that short term demand has continued to soften while stockpiling goes on.
Gas purchases continue to see a sharp decline from pre-pandemic days, with a 58.6 percent drop for credit and 42.7 percent drop for debit. These drastic reductions reflect the effects that stay-at-home orders and social distancing are having on people purchasing gas for their vehicles.
Other consumer goods have seen a decrease as well, with a 16.1 percent drop in credit and a 7.4 percent drop for debit spending.
ATM transactions have seen a slump of 30 percent overall, with 14.4 percent from the same credit union and a 38.6 percent drop from those using another credit union’s machine. That drop could indicate that people are using primary ATMs closer to home, PSCU noted.
ATM deposits are down 4.5 percent while withdrawals have seen a massive 37.7 percent decline. However, the average amounts of deposits and withdrawals are both up in general. Average deposits sit at $511.44, a rise of 10.8 percent from last year, while withdrawals see an average of $132.83, a 9.5 percent spike from last year.
