Travel and entertainment spending by American Express commercial customers slowed its growth rate in the second quarter, although total spending in the segment maintained a constant pace of growth, the company reported.
T&E spending by Amex commercial customers increased 1 percent year over year in the second quarter, compared with a 2 percent year-over-year increase in the first quarter. Commercial customer spending on goods and services was up 3 percent year over year in the quarter, and total spending was up 2 percent—the same rate as the first quarter, although that quarter also was skewed by about a percentage point due to the extra day in the 2024 leap year.
In an earnings call, American Express CFO Christophe Le Caillec said the slower T&E growth was "driven by softer airline and lodging spend, while restaurant spending continued to be very strong, up 8 percent."
Spending by U.S. large and global corporate clients, inclusive of T&E and goods and services, increased 4 percent year over year in the second quarter. Spending by small and midsized clients increased 2 percent, Amex reported.
Total spending, inclusive of T&E and goods and services, by Amex business clients outside of the United States increased 12 percent year over year in the second quarter. Total international T&E spending, which includes both consumer and commercial clients, was up 8 percent year over year.
American Express reported total revenue of $17.9 billion in the second quarter, up 9 percent year over year. Net income for the quarter was $2.9 billion, down slightly from $3 billion in the second quarter of 2024. American Express' consolidated expenses increased 14 percent year over year in the second quarter.
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