Capital One CEO says US consumers are in 'good shape,' but there are 'worrying signs'

Core Viewpoint - The U.S. consumer remains a source of strength in the economy, despite some pressures from inflation and higher interest rates [1][3]. Consumer Debt and Payment Trends - Consumer debt servicing burdens are stable near pre-pandemic levels, with improving delinquency rates and lower delinquency entries in Capital One's card portfolio [3]. - Payment rates are improving year-over-year, although the share of customers making minimum payments on credit cards is above pre-pandemic levels, indicating some pressure from inflation and interest rates [3][4]. Spending Trends - Consumer spending trends were stable through the end of the first quarter, with an uptick in spend growth per customer relative to the same time last year [5]. - Recent increases in retail spending, particularly in electronics, were noted, potentially influenced by consumers making purchases earlier in response to tariffs [7][8]. - Spending growth in travel and entertainment (T&E) and airfare has slowed [8]. Auto Purchases and Tariff Impact - There appears to be a pull forward in auto purchases as consumers try to get ahead of tariff impacts, with indications that auction prices are increasing more than seasonal norms [9]. - The 25% tariff on imported passenger vehicles and light trucks was implemented on April 3, with a similar levy on certain auto parts set to roll out soon [10].