Consumer Card Spending Growth Robust in January
ATLANTA, Feb. 12, 2013 – First Data Corporation, a global leader in electronic commerce and payment processing, today released its First Data SpendTrend® analysis for the full month of January 2013 compared to January 2012. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks at U.S. merchant locations.
Dollar volume growth improved to 6.2% versus 4.0% in December as consumer spending bounced back despite the payroll tax increase. Improved retail spending was a large contributor to this growth. Retailers experienced a healthy rebound in spending as consumers increased discretionary spending during the start of the year. Retail dollar volume growth was the highest growth seen since August 2012. Dollar volume growth in building material & garden equipment & supply dealers and sporting goods, hobby, book & music stores were key contributors to the retail growth.
Average ticket growth of 0.9%, an eight-month high, was a significant improvement versus December. Retail average tickets saw the highest growth seen in over a year as promotional activity by retailers curtailed and shoppers showed an increased propensity to spend more. Sporting goods, hobby, book & music stores in particular saw the largest average ticket growth.
“Consumers showed a willingness to spend despite an increase in payroll taxes. The growth was supported by a number of factors including the short-term resolution of the fiscal cliff scenario, growth in jobs, continued improvement in the housing market and the rising stock market,” said Rikard Bandebo, vice president and economist, First Data. "However, merchants will undoubtedly keep a close eye on consumer sentiment in the coming months to determine if shoppers will maintain increased spending as the full impact of the payroll tax hike may not be felt until February or even later out.”
|January Dollar Volume Growth||CHANGE|
|Note: All transactions are same-store growth.|
For more information on First Data SpendTrend, visit www.spendtrend.com or call SpendTrend Customer Care at 800-430-0169. A supplementary podcast including further analysis of the SpendTrend January 2013 report is available here.
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.
Elizabeth Grice, First Data
First Data SpendTrend, a macro-economic indicator, is based on aggregate same-store sales activity in the First Data Point of Sale Network. First Data SpendTrend does not represent First Data’s financial performance.