News

Study: Consumer spending up this year

December 21, 2011

Consumers are spending more than last year, responding aggressively to holiday promotions, according to First Data's SpendTrend reports. The electronic commerce and payment processing company issued Mid-Month Flash analysis for the first half of December 2011 compared to the same period in December 2010. The analysis tracks same-store consumer spending by credit, signature debit, PIN debit, EBT cards and checks at U.S. merchant locations.

Highlights:

Dollar volume growth is steady

Overall dollar volume growth was steady compared to November levels. Spending growth was stronger than this time last year; however the decline in average ticket values early in the month is consistent with a discount-oriented consumer sentiment.

Improved transaction growth

Consumers are responding to aggressive holiday promotions by making more frequent purchases. Most industries saw higher transaction growth, led by food services and drinking laces.

Retail spending growth accelerates

Average ticket growth was down sequentially, signaling that retailers were offering discounts to increase foot traffic. Both clothing/accessory and general merchandise stores posted healthy dollar volume growth early in December and were up significantly from November.

Credit card spending surges

Pent-up demand and improved consumer confidence drove consumers to put purchases on credit cards and propelled growth rates close to double-digit levels this month.

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