This annual report by Javelin Strategy & Research—the first of two parts, this one looking at external factors and their impact on the credit card market—finds that the leading indicators point toward stability. Unemployment and bankruptcies are low, and inflation at last seems to be cooling. Accordingly, 2024 sets up as another blockbuster year for credit acquisition as card products remain enormously popular with consumers.
The overall outlook for 2024 no longer looks as bleak as it did a year ago, but there are some concerning indicators on the horizon (notably, a low rate of personal savings). U.S. households were put through the wringer in 2023 by high inflation and other stressors. As 2024 proceeds, Javelin looks at the external factors affecting credit cards and assesses the way forward for issuers.
Key questions discussed in this report:
- How have macroeconomic conditions shaped the current credit market?
- What economic conditions do we expect to see in 2024?
- What strategies should issuers employ to prepare for the possibility of a recession in 2024?
Bureau of Economic Analysis, Bureau of Labor Statistics, Consumer Financial Protection Bureau, Equifax, Federal Reserve, Mastercard, New York Fed, Visa, World Bank
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