Tuesday November 10, 06:19 PM
UPDATE 1-American Express spending volume up in Oct vs Sept
NEW YORK, Nov 10 (Reuters) - American Express Co said card spending increased in October from September, in another sign that the worst of the financial crisis may have past for the largest U.S. credit-card company.
According to slides of a presentation that Chief Executive Kenneth Chenault is giving at a Bank of America Merrill Lynch conference on Tuesday, American Express (NYSE: AXP - news) estimated card spending adjusted after foreign exchange factors was almost unchanged in October, compared to a year ago.
That showed an improvement from a decline of a bit more than 5 percent in September and almost 10 percent in August.
Chief Financial Officer Dan Henry in October said spending volumes had been stable since May and forecast spending could decline in the low single digits or be flat in the fourth quarter compared to a year ago.
Total (FP.NX - news) card spending fell 11 percent in the third quarter from the third quarter of 2008. However, it showed an improvement against a 16 percent contraction in the second quarter.
Analysts have said American Express, which relies on affluent and corporate customers more than its peers, is recovering faster from the financial meltdown as economic jitters ease.
American Express shares rose 21 cents, or 0.5 percent, to $39.26 in afternoon trading on the New York Stock Exchange, touching a 14-month high. The company is up 110 percent this year.
(Reporting by Juan Lagorio, Editing by Tim Dobbyn) Keywords: AMERICANEXPRESS/
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