Consumer Spending Grows in April, but at a Slower Pace says First Data
First Data Corporation has released its First Data SpendTrend™ analysis for the month of April 2010 compared to April 2009. SpendTrend tracks same-store consumer spending via credit, signature debit, PIN debit and EBT cards at U.S. merchant locations.
Consumer spending growth continued in April, albeit at a slower pace, resulting in a second consecutive month of double digit volume growth. Same-store dollar volume growth was 10.2% (8.8% excluding Gasoline Stations) and transaction growth was 9.0% (8.4% excluding Gasoline Stations), following 11.5% and 10.1%, respectively, in March. Consumers continued to spend their savings and cash-on-hand. Year-over-year credit utilization increased slightly but remained at subdued levels. Average tickets held steady up 1.1%. Excluding gasoline stations, average ticket growth was 0.4%.
Transaction growth improved, but April was not as strong as March. Year-over-year same-store transaction growth was 9.0%, but most categories posted slight declines in growth compared to March. Leisure’s transaction growth dropped significantly to 7.7%, down from March’s growth rate of 16.0%. Leisure’s robust transaction growth in March was due to spring break and holiday travel. Food Services/Drinking Places (incl. Restaurants/QSR) maintained steady transaction growth month-over-month with growth of 9.8% in April compared to 10.2% in March.
As the economy showed signs of improvement, consumers chose PIN debit over all other card payment types. PIN debit same-store transaction growth was 12.2% and dollar
Additional insights from the SpendTrend April 2010 report can be accessed at www.firstdata.com.
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