SpendTrend: Consumer Spending Still Rising; Strong Prepaid Growth (July 15, 2014)
Consumer spending eased off a bit in June, but remained on an overall path of growth, according to data from First Data Corp.’s latest SpendTrend report. Spending volume growth in June was 3.0 percent, down slightly from May’s 4.2 percent. Meanwhile, average ticket growth was 0.9 percent in June, versus 1.2 percent the previous month. Spending volume on prepaid cards showed the strongest growth among payment types, jumping 4.0 percent over last June. Credit card spending followed closely behind, up 3.9 percent, while PIN debit rose 3.3 percent and signature debit ticked up 2.0 percent. Check spending declined by 1.2 percent.
First Data said the overall spending growth reflects the recovering economy and rising consumer willingness to spend. Meanwhile, the strong credit figures indicate steady growth in lending, improved consumer credit quality and a growing consumer confidence in their personal finances.
First Data’s SpendTrend report combs same-store transaction data from nearly 4 million merchant locations serviced by the processor.
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