AmEx Says Card Spending Increased In October

SARA LEPRO

NEW YORK (AP) — American Express Co. said Tuesday that spending on its credit cards increased in October for the first time this year, an encouraging sign that consumers may be feeling more confident about the economy.

Speaking at a conference sponsored by Bank of America Merrill Lynch, Chairman and CEO Kenneth Chenault said billed business, or the amount charged on American Express cards, rose 3 percent in October compared with the same month last year, after a more than 5 percent decline in September and a more than 10 percent decline in August.

Spending has steadily improved since the spring and the declines in billed business appear to have "bottomed out," Chenault said.

Following the presentation, shares of the New York-based lender rose 62 cents to $39.67.

Still, Chenault remains cautious, noting that economic challenges like high unemployment persist, and that economic growth will likely be slower going forward. But he is encouraged by the improving trends in spending and credit that he is seeing.

"There are signs that the recession may be approaching an end," he said.