Travel and entertainment spending by American Express U.S. commercial customers increased 3 percent year over year in the second quarter, as spending by international commercial customers showed strong growth during the period, the company reported.
U.S. commercial customer T&E spending for Amex totaled $28 billion in the second quarter, equal to the previous quarter and up from $27 billion in the second quarter of 2023. On goods and services, Amex U.S. commercial customer spending was up 1 percent year over year to $104 billion.
Total spending by small and midsized commercial customers, inclusive of T&E and goods and services, was up 2 percent year over year in the quarter, while spending by large and global corporations in the U.S. was flat.
Amex CFO Christophe Le Caillec noted in an earnings call that “we are not in a high growth spend environment, particularly in the U.S.,” though spending volumes are tracking in line with the company’s expectations. He also noted “slower growth in certain T&E categories versus the prior quarter, such as airline and lodging.”
T&E spending by international Amex customers, both consumer and commercial, increased 11 percent year over year to $27 billion. International SME and large corporate spending, inclusive of T&E and goods and services, was up 14 percent year over year, compared with a 13 percent year-over-year increase for international consumer business.
“We continue to see double-digit growth in spending from international consumers and from international SME and large corporate customers, and we are also seeing double-digit growth across all regions,” according to Le Caillec.
Amex reported total revenues of $16.3 billion for the second quarter, up 8 percent year over year. The company’s net income for the quarter was $3 billion, up from $2.2 billion in the second quarter of 2023.
