Card Spending Growth Inched Lower in June as Consumers Remained Cautious
ATLANTA, July 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 June 2012 compared to June 2011. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks at U.S. merchant locations.
Year-over-year dollar volume growth was 6.4% in June, down from May’s 7.0% growth. Stubbornly high unemployment and economic anxiety took a toll on sales as consumers pulled back on spending. Despite a sustained decline in fuel prices, consumers have not translated those savings into spending elsewhere.
Average ticket growth slowed to 0.1% in June from 1.0% in May. Many retailers engaged in aggressive promotional activity in order to stimulate demand. Low inflation levels also contributed to the slowdown in average ticket growth. Average ticket growth at retail stores was 1.5% in June after rising 1.9% in May.
“Consumers became increasingly cautious with their spending in June. Unseasonably warm temperatures accompanied by storms further dampened spending growth late in the month,” said Mark Herrington, executive vice president of Global Product Management and Innovation, First Data.
|June 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 June 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.