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 that total spending by commercial customers in the first quarter increased by 2 per cent year-on-year, with spending on T&E (travel and entertainment) also rising by 2 per cent.
Spending by US-based large and global clients, including T&E and goods and services, increased by 1 per cent compared with the first quarter of 2024, while spending by US small and midsized clients was up 2 per cent, according to Amex.
Among commercial clients outside the US, total spending including T&E and goods and services increased by 13 per cent 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 per cent 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’s 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," he said.
Squeri added that so far in April - even with the uncertainty in the global economy around US 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 per cent on the same quarter of last year. Net income for the first quarter was $2.6 billion, a rise of 6 per cent year-on-year.
American Express has also announced the completion of its acquisition of expense technology provider Center, which it announced in early March.
In Thursday's earnings call, Squeri said the acquisition was part of the company's goal to "increase our relevance with SME customers". The company is working towards creating "one ecosystem" where Center would sit among its other offerings for the SME segment, built around the Kabbage platform.