"American Express Hit by Slowing Economy"

RENEE MONTAGNE, host:

NPR's business news starts with credit cards and the slowdown in swiping.

One of the country's biggest charge and credit card companies says the slowing economy is hurting its business. American Express says credit card charges began to tail off in December. It's warning Wall Street that its profits will be lower as more cardholders fail to make payments. The CEO of American Express says card-spending is still strong, but he pointed to problems among consumers in California, Florida and other parts of the country most affected by the downturn in housing.