Credit card firms say U.S. consumers are battling high inflation.

By The Exchange Team

American Express and Bank of America say U.S. consumers are willing to pay higher costs despite a slow economy that could enter a recession.

American Express posted higher-than-expected third-quarter earnings and sales on Friday, while also raising its full-year outlook.

Customer spending on goods, services, travel, and entertainment grew 21% year over year, the business claimed.

Americans are travelling more to make up for pandemic-delayed excursions. After pandemic lockdowns lifted, consumers splurged on food and leisure.

American Express' travel and leisure segment expenditure rose 57% from last year, with foreign volumes approaching pre-pandemic levels in the 3rd quarter.

American Express CEO Stephen Squeri said card member spending was near-record in the quarter.

As prices rose and the Fed hiked interest rates to slow the economy, consumers may have become more stingy.