Tuesday November 10, 06:37 PM
UPDATE 2-American Express spending volume up, boosts stock
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 passed for the largest U.S. credit-card company and sending shares up to
their highest price in 14 months.
Chief Executive Kenneth Chenault said on Tuesday American Express card spending adjusted for foreign exchange factors was down 1 percent in October, compared with a year ago.
However, that showed an improvement from a decline of a bit more than 5 percent in September and almost 10 percent in August.
'We view this performance as positive', Chenault said at a financial services conference organized by Bank of America Merrill Lynch.
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 with 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 (NYSE: AXP - news) , 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 were up 25 cents, or 0.6 percent, to $39.30 in afternoon trading on the New York Stock Exchange, after touching a 14-month high of $39.38. The company is up 110 percent this year.
(Reporting by Juan Lagorio, Editing by Tim Dobbyn and Gerald E. McCormick) Keywords: AMERICANEXPRESS/
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