July 12, 2011 09:00 AM Eastern Daylight Time
Card Spending Growth Increased on Rising Inflation; Credit Utilization Reaches 12-Month High
ATLANTA--(BUSINESS WIRE)--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 2011 compared to June 2010. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT cards and checks at U.S. merchant locations.
“Consumers are increasingly turning to credit cards to fund non-discretionary purchases.”
Year-over-year dollar volume growth increased 8.8% in June, up from May’s 6.6% growth rate. Inflation has driven core prices higher, as June average ticket growth was 2.1%, the largest increase in over a year. Most industries posted higher dollar volume growth in June versus May. The exception was the hotel industry, which saw dollar volume growth slow from 11.5% in May to 7.6% in June.
Credit card dollar volume growth was 10.7% in June, the largest increase in over a year. Credit surpassed all other payment types for the second consecutive month as consumers increasingly have been purchasing non-discretionary goods on credit.
“Dollar volume and transaction growth improved in June due to higher average ticket values, which are likely being driven by inflation,” said Silvio Tavares, SVP and division manager of First Data Information and Analytics Solutions. “Consumers are increasingly turning to credit cards to fund non-discretionary purchases.”
June Transaction Growth
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CHANGE
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June Dollar Volume Growth
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CHANGE
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| Credit | +6.8% | Credit | +10.7% | |||
| Signature Debit | +8.8% | Signature Debit | +8.5% | |||
| PIN Debit | +3.8% | PIN Debit | +6.0% | |||
| Check | -12.3% | Check | -12.6% | |||
| 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 2011 report is available here.
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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.
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.
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