FIRST DATA SPENDTREND® October 2012: Card Spending Growth Robust In October
· Card Spending Growth Gained Momentum in October. Dollar volume growth of 6.7% in October was healthy as shoppers became less pessimistic about the economy. Improved consumer sentiment and a pullback in savings continued to support spend. Meanwhile, transaction growth slipped to 5.9% in October compared to 6.3% in September.
· Average Ticket Growth Returned To Positive Territory. Average ticket growth was 0.8% in October, a reversal from September’s -0.5% growth. Several retail categories experienced improved average tickets due to a slight rise in prices. However, a sharp increase in average ticket growth at Retailers indicates that consumers have also shown an increased tendency to spend more.
· Credit Card Spending Outpaced Debit. For the first time since July, credit dollar volume grew faster than PIN and Signature debit. Credit dollar volume growth was 8.9%, a healthy uptick compared to 2.3% last month. The slower growth in debit was largely driven by restrained spending in categories such as General Merchandise Stores where debit cards are the typical payment method.
· Hurricane Sandy Impacted Spending In The Northeast. Several segments in the Northeast, such as Building Material & Garden Equipment & Supply Dealers and Food/Beverage Stores saw a surge in business late in the month as consumers stocked up on supplies and prepared for the storm. However, during Sandy’s landfall and shortly after sales were negatively disrupted across most segments as power outages kept shoppers at home.
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