Amex reports solid Q1 consumer spending

GLOBAL REPORT – Economic uncertainty has not curtailed business customer spending on American Express products, with commercial customer spending in the first quarter continuing growth levels seen throughout most of 2024, the card company said during its 1Q25 earnings report.

American Express said that total spending by commercial customers in the first quarter increased by 2% year-on-year, with spending on T&E (travel and entertainment) also rising by 2%.

Spending by U.S.-based large and global clients, including T&E and goods and services, increased by 1% compared with the first quarter of 2024, while spending by U.S. small and midsized clients was up 2%, according to Amex.

Among commercial clients outside the U.S., total spending including T&E and goods and services increased by 13% year-on-year during the first quarter. Total T&E spending by international clients, which includes both commercial and consumer clients, was up by 9% over the same period.

“In T&E, while we saw a sequential slowdown in airline billings growth, billings in restaurants and lodging remained strong in the quarter,” said Amex Chairman and CEO Stephen Squeri in an earnings call. “Overall T&E growth was in line with the steady levels we saw through most last year.”

Amex CFO Christophe Le Caillec added that this trend has been similar to broader company spending patterns.

“While the level of macroeconomic uncertainty has increased, the activity that we see across our customer base is consistent with, and in many cases, better than what we saw in 2024,” Le Caillec said.

Squeri added that so far in April - even with the uncertainty in the global economy around U.S. tariff policy - spending levels across all customer segments have remained consistent with the first quarter.

Amex reported $17 billion in total revenue for the first quarter, up 7% on the same quarter of last year. Net income for the first quarter was $2.6 billion, a rise of 6% year-on-year.