Central Texans Spending Cautiously Ahead of Holiday Season

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Nov 27, 2023, 17:44 ET

Findings from UFCU's Q3 Spending Index show a slowdown in spending and an increase in credit utilization.

AUSTIN, Texas, Nov. 27, 2023 /PRNewswire/ -- University Federal Credit Union, Austin's largest locally-based and member-owned financial institution, released the top findings from its quarterly "Spending Index." The data, aggregated from approximately 230,000 UFCU cardholders in Central Texas, depict spending trends from the third fiscal quarter of 2023 as consumers prepare for the holiday season.

According to our research, aggregate spending is up year over year, while spending at the individual level has decreased by approximately 1-2%. The difference is largely attributable to the annual inflation rate measured at 2.39% in October. A closer look at the top 10 categories where people are spending show a mixed story of where those dollars are going.

Trends during Q3 show that consumers remain cautious about spending in many categories. Despite year-over-year increases (shown in table below), spending in categories including supermarkets, restaurants, housing services and medical and health services slowed since Q2. Categories including fuel, telecom and utilities, leisure goods retail, fashion retail and general merchandise stores are seeing slight upticks from earlier in the year—likely an indicator of early holiday shopping.

Spending Category	YoY Change Q3'22 to Q3'23
Supermarkets	↑ Up 3.8%
Restaurants	↑ Up 5.1%
Fuel	↓ Down 9.3%
Telecom and Utilities	↑ Up 4.0%
Leisure Goods Retail	↑ Up 32.1%
Auto Services	↑ Up 3.2%
Housing Services	↑ Up 19.2%
Medical and Health Services	↑ Up 1.8%
Fashion Retail	↓ Down 5.5%
General Merchandise Stores	↑ Up 3.5%

"We continue to see impact on consumers' spending behaviors from an uncertain economic landscape nationally, and in Central Texas," said UFCU CEO and President Michael Crowl. "This holiday season, many may find it challenging to keep up with typical spending habits when it comes to travel, gifts, and other leisure spending categories. Further utilization of credit is likely for additional purchasing power."

About UFCU
As a Member-owned, not-for-profit financial cooperative, UFCU is passionate about helping Members improve their lives. With more than 370,000 Members and $4.7 billion in total assets under management, UFCU offers a variety of products, services, and education programs to empower Members in achieving financial success. More information about UFCU Mortgage Services and the credit union can be found on its website www.ufcu.org or its social media platforms: Facebook, Twitter, Instagram.

Opinions, analyses, estimates, forecasts, and other views of UFCU's Analytics Group included in these materials are based on a number of assumptions, and are subject to change without notice. Unless otherwise indicated, any data contained herein is presented in aggregate form, and cannot be used to identify any individual or entity. Although UFCU's Analytics Research Group bases its opinions, analyses, estimates, forecasts and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the UFCU Analytics Research Group represent the views of that group as of the date indicated and do not necessarily represent the views of UFCU, its management or members.

SOURCE UFCU