Card Spending Growth Slowed Sequentially in July; Credit Growth Stalled
ATLANTA, Aug. 09, 2011 – First Data Corporation, a global leader in electronic commerce and payment processing, today released its First Data SpendTrend® analysis for the full month of July 2011 compared to July 2010. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT cards and checks at U.S. merchant locations.
Overall year-over-year dollar volume growth was 7.3% in July, a sharp slowdown from June’s 8.8% growth rate. Dollar volume growth was hampered by slower increases in average tickets. However, dollar volume growth at General Merchandise Stores, including Value Retail, rose 10.3%, the largest increase in 10 months. Value retailers increased merchant promotional activity and discounting to attract consumers.
Dollar volume growth on credit cards slowed from 10.7% in June to 7.4% in July. Several discretionary retail categories such as travel saw lower credit dollar volume growth. Higher-end consumers likely limited their credit spending due to the uncertain economic climate. Dollar volume growth was spread more evenly across all payment types in July.
“Despite rising input costs from inflation, many retailers have resorted to cutting prices in order to stimulate demand from an increasingly cautious consumer base,” said Silvio Tavares, SVP and division manager of First Data Information and Analytics Solutions. “This trend could have a negative impact on retailers heading into the peak of the Back-to-School shopping season.”
|July Transaction Growth||CHANGE||July Dollar Volume Growth||CHANGE|
|Signature Debit||+7.8%||Signature Debit||+7.0%|
|PIN Debit||+5.1%||PIN Debit||+7.5%|
|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 July 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.
Cara Crifasi, 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.