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India
Credit card spending in India took a significant dip in February, hitting a 7-month low, according to a report by ACMIIL, a stock market firm. The report shows a decline of 9 percent month-on-month (MoM), with total credit card spending falling to Rs 1,672 billion in February from Rs 1,841 billion in January. “Monthly Impact Coupled with Industry Slowdown Led to Spending Low of 7 Months,” the report stated, reflecting a noticeable drop in consumer activity.
Year-on-Year Growth Slows
While the February spending figures marked a decline compared to January, the report highlighted a 12 percent increase compared to February 2024. However, this growth is significantly lower than the average year-on-year (YoY) increase of around 30 percent that had been observed until January 2024. This slower growth indicates a slowdown in consumer activity across the country.
Transaction Volume Decline
Transaction volumes also showed a mixed trend. While the number of transactions rose 27 percent compared to February 2024, it dropped by 8 percent when compared to January 2025. This marks the slowest yearly growth in the past 13 months, further suggesting that consumers are using their credit cards less frequently. The average amount spent per transaction also showed a slight decline, dropping from Rs 4,282 in January to Rs 4,219 in February.
Cautious Consumer Behavior
The report pointed to cautious consumer behavior as one of the reasons for the decline. One contributing factor could be tax planning, as many consumers tend to avoid large or non-essential purchases during this time of year. February also lacked major festivals or spending triggers that usually lead to higher consumption, further adding to the dip in spending.
Decline In Average Spend Per Card
The average spend per credit card also dropped in February. It stood at Rs 15,295, down from Rs 16,911 in January—a 9.6 percent month-on-month decline. This signals a slowdown in consumer spending, with cardholders opting for more conservative spending habits. According to ACMIIL, the weaker growth numbers also correlate with the slowdown in new card issuances, adding to the overall trend of declining consumer activity.
A Slowdown In Consumer Spending
February’s figures reflect a broader trend of muted consumer activity, driven by economic caution and seasonal spending patterns. With a decline in transaction volume, lower average spends per card, and less frequent credit card usage, the report signals that consumers are tightening their belts in response to market uncertainty.
(With Inputs From ANI)
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