American Express (NYSE:AXP) is riding high — and so are its richest customers.

While warnings of a tariff-fueled recession swirl and some Americans are pulling back on spending, AmEx says its most affluent cardholders are still dropping cash on the finer things — especially dining out, which CFO Christophe Le Caillec last week called "the ultimate discretionary expense."

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In Q1, billed business on AmEx cards jumped 7.5% year over year, helping push revenue to $17 billion, an 8% increase. That's better than Wall Street expected — and according to CEO Stephen Squeri, it's largely thanks to confident spending from the top tier.

Restaurant and hotel spending stayed strong, while airline spending cooled slightly. But it's not just older cardholders footing the bill anymore. The real surge came from younger Americans: 60% of AmEx's 3.4 million new cardholders last quarter were Gen Z and millennials. Those groups also spent 14% more compared to last year — compared to just a 1% increase from boomers.

AmEx is leaning into that shift. Squeri said younger customers are flocking to the card for its lifestyle perks, like restaurant credits and access to premium dining through acquisitions like Resy and Tock. He even dubbed the revamped Gold Card "the Restaurant Card."

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And despite rising economic uncertainty, AmEx isn't pulling back. Squeri said the company sees no reason to yank its full-year forecast of 8–10% revenue growth. "It's probably easy to pull guidance," he told Yahoo Finance, "but what are you going to pull if you know you're still within your guidance range?"

"There's a lot of stability and strength, despite the news and the environment," Le Caillec explained to CNBC.

That confidence sets AmEx apart from other companies, including JPMorgan Chase (NYSE:JPM) and major retailers, that are warning of a slowdown and ditching forecasts due to tariff chaos and market whiplash. Meanwhile, Le Caillec said that while some small businesses may be stockpiling inventory ahead of potential price hikes, AmEx's core spending levels don't appear artificially inflated.

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The rich are still swiping, but what about everyone else? 

Beyond the platinum perks and premium cardholders, the broader economy is flashing warning signs. U.S. small business confidence dropped sharply in March, with only 21% of owners expecting better conditions ahead—the lowest since October 2024, according to the National Federation of Independent Business. 

Sales expectations also fell to their lowest point since before the 2024 election. Meanwhile, consumers across income levels are tightening their belts. A McKinsey survey found that 75% of Americans reported trading down in categories like groceries and apparel, and many are delaying non-essential purchases amid inflation concerns. 

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This article American Express Says the Rich Are Still Dining Out and Living Large — While Everyone Else Braces for Recession, Tariffs, and Skyrocketing Prices originally appeared on Benzinga.com

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