Card Spending Growth Healthy in May, but Losing Steam
ATLANTA, June 11, 2012 – First Data Corporation, a global leader in electronic commerce and payment processing, today released its First Data SpendTrend® analysis for the full month of May 2012 compared to May 2011. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT cards and checks at U.S. merchant locations.
May’s same-store dollar volume growth increased 7.0% year-over-year, up from April’s growth of 5.7%. Although consumers continued to spend at a healthy clip early in the month, activity did slow as the month progressed. Transaction growth in May held fairly steady at 5.9%.
Consumers were more cautious with spending in discretionary categories in May. Industries such as hotels and restaurants saw significantly slower dollar volume growth in May compared to April. Overall year-over-year average ticket growth was 1.0% in May, up from April’s -0.1% growth. In May, credit dollar volume growth surged to 8.2% past April’s growth figure of 5.8%.
“Overall May card spending growth was healthy but there is reason for caution. During the month we saw consumers reducing the growth of their discretionary spending at retail merchants and increasingly resorting to credit for necessities,” said Silvio Tavares, SVP and division manager of First Data Global Information and Analytics Solutions, which publishes SpendTrend.
|May Dollar Volume Growth||CHANGE|
|Note: All transactions are same-store growth.|
For more information on First Data SpendTrend, visit www.firstdata.com/infoanalytics or call SpendTrend Customer Care at 800-430-0169. A supplementary podcast including further analysis of the SpendTrend May 2012 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.