AMEX spending picked up at the end of the year, thanks to younger cardholders

at American Express Affluente cardholders went more comfortably late last year, Chief Financial Officer Christophe Le Caillec he told CNBC.

Spending on Amex cards fell 8% year-over-year in the fourth quarter, after slowing to a 6% growth rate in the second and third quarters, according to the company. profits Presentation

While the year-end pickup was seen across all customer segments and geographies, it was fueled primarily by millennials and gen zz users, where transaction volumes jumped 16%, up from 12% in the third quarter.

The older groups were kept with their cards; Gen X customers spent 7% more in the fourth quarter, with baby boomers’ bills rising just 4%.

“We had strong growth in Gen Z and millennials, and this 2 percentage point acceleration gives us great optimism for 2025,” said Le Caillec.

The high transaction level has continued in the first three weeks of this year, he added.

Younger Americans say they spend more on experiences than goods, and that’s reflected in the results for Amex, along with issuer Rival Card Morgan Chase Mountain for high market credit cards.

Travel and entertainment bills rose 11% in the quarter, compared to 8% for goods and services. The boost to travel came from airline spending, which rose 13%, as spending on business class and first-class air rose 19%, according to Le Caillec.

AMEX shares fell more than 2% in the company’s mid-morning Friday new Earnings and revenue roughly in line with analyst expectations. Shares of the New York company have been on a tear for the past year, hitting a 52-week high on Thursday.

“We are encouraged by the acceleration of shooting growth that will be a key factor for Amex to meet its revenue growth target of at least 10%,” Cristopher Analysts led by Christopher Kennedy wrote in a research note. “We remain buyers no matter the shot.”