Consumer Spending Growth Loses Steam Following Early 2010 Bounce
ATLANTA, JUNE 9, 2010 – 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 2010 compared to May 2009. SpendTrend tracks same-store consumer spending via credit, signature debit, PIN debit and EBT cards at U.S. merchant locations.
After a rebound in consumer spending in the first quarter of 2010, spending growth began to slow in April and May. Same-store dollar volume growth was 9.2% (8.2% excluding Gasoline Stations) and transaction growth was up 8.4% (8.1% excluding Gasoline Stations) in May, following 10.2% and 9.0%, respectively, in April. Growth in May was hampered by continued levels of high unemployment.
Consumer spending growth slowed in May as General Merchandise Stores (including Value Retail) posted their lowest year-over-year dollar volume and transaction growth in 2010. Dollar volume growth in this category was 8.7%, a decrease from April’s growth rate of 12.4%, and transaction growth also declined to 10.2% from 11.7% in April. The data suggests that low-end consumers are getting squeezed by an uneven economic recovery and high unemployment
Dollar volume growth improved month-over-month in Hotels, Leisure and Travel as premium consumers began to increase travel and make vacation plans. Hotels saw the largest improvement in over two years with dollar volume growth of 11.0%, up from April’s rate of 5.0%, and transaction growth of 10.1%, an increase from April’s rate of 4.6%.
Consumers continued to favor PIN debit with May dollar volume growth of 13.8% and transaction growth of 11.3%. PIN debit growth outperformed both signature debit and credit for the month.
Additional insights from the SpendTrend May 2010 report can be accessed at www.firstdata.com or by calling SpendTrend Customer Care at (800) 430-0169.
Media Relations Contact:
Elizabeth Grice, First Data
303-967-8526
elizabeth.grice@firstdata.com
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.
After a rebound in consumer spending in the first quarter of 2010, spending growth began to slow in April and May. Same-store dollar volume growth was 9.2% (8.2% excluding Gasoline Stations) and transaction growth was up 8.4% (8.1% excluding Gasoline Stations) in May, following 10.2% and 9.0%, respectively, in April. Growth in May was hampered by continued levels of high unemployment.
Consumer spending growth slowed in May as General Merchandise Stores (including Value Retail) posted their lowest year-over-year dollar volume and transaction growth in 2010. Dollar volume growth in this category was 8.7%, a decrease from April’s growth rate of 12.4%, and transaction growth also declined to 10.2% from 11.7% in April. The data suggests that low-end consumers are getting squeezed by an uneven economic recovery and high unemployment
Dollar volume growth improved month-over-month in Hotels, Leisure and Travel as premium consumers began to increase travel and make vacation plans. Hotels saw the largest improvement in over two years with dollar volume growth of 11.0%, up from April’s rate of 5.0%, and transaction growth of 10.1%, an increase from April’s rate of 4.6%.
Consumers continued to favor PIN debit with May dollar volume growth of 13.8% and transaction growth of 11.3%. PIN debit growth outperformed both signature debit and credit for the month.
| May Card Based Transactions | CHANGE |
|---|---|
| Credit | +3.3% |
| Signature Debit | +11.0% |
| PIN Debit | +11.3% |
| Total Transactions | +8.4% |
| Note: All transactions are same-store growth. | |
Additional insights from the SpendTrend May 2010 report can be accessed at www.firstdata.com or by calling SpendTrend Customer Care at (800) 430-0169.
Media Relations Contact:
Elizabeth Grice, First Data
303-967-8526
elizabeth.grice@firstdata.com
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.
