TMCNet:  First Data Releases August 2014 SpendTrend® Analysis

[September 12, 2014]

First Data Releases August 2014 SpendTrend® Analysis

ATLANTA --(Business Wire)--

The combination of consumers soaking up the last weeks of summer before and during Labor Day weekend and August back-to-school shopping helped power the strongest retail spending growth in 13 months, according to data reported today by First Data Corporation, the global leader in payment technology and services solutions. The First Data SpendTrend report examined the period for Aug. 2 through Sept. 2, 2014 compared to Aug. 1 through Sept. 1, 2013. SpendTrend tracks same-store point-of-sale data by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks from nearly 4 million merchants locations serviced by First Data in the U.S.

Driven by August vacations, leisure spending growth rebounded in August, and at 3.3% was the strongest in six months. As summer waned, vacationers contributed to the rise in year-over-year spending growth in the Hotel and Travel categories, at 9.3% and 5.1% growth, respectively, a marked improvement when compared to last month's spending growth of 7.9% and 4.6%.

Overall retail spending growth was the strongest in over a year with retail dollar volume growth at 2.8% in August (vs. 2.6% in July), as back-to-school shopping propelled spending growth in several retail categories. Dollar volume growth at Furniture and Home Furnishings and General Merchandise Stores was positive on a year-over-year basis and increased sequentially compared to July with a growth of 4.5% and 4.4%, respectively.

August's overall average ticket growth remained positive at 1.2%, slipping slightly from July's 1.5% on a year-over-year basis. Gasoline station average ticket growth fell to -2.3% compared to July's decline of -0.2% as gasoline prices fell on both year-over-year and month-to-month bases. Meanwhile, the average ticket growth of 0.8% was an improvement over 0.4% last month as retailers were less aggressive with price discounting.

"Two important factors - back-to-school spending and late summer vacationing - contributed to strong overall consumer spending in August and despite stagnant wage growth and a moderate housing market, consumer confidence rose in August," said Krish Mantripragada, SVP, Information and Analytics Solutions with First Data, adding, "robust credit card spending at 5.8%, was healthy again last month, surpassing both PIN and signature debit growth."



August Dollar Volume Growth

   

CHANGE

 
Credit +5.8 %
Signature Debit +1.9 %
PIN Debit +3.4
Check -5.9 %
Prepaid +6.0 %
 
Note: All transactions are same-store growth.
 

Processing more than 59 billion transactions globally in 2013, First Data has long been a data powerhouse with the ability to help its clients use transaction data to prevent fraud, identify spending patterns and create loyalty programs.

To view infographics showing July SpendTrend data, visit: http://www.firstdata.com/spendtrend/201408/spendtrend-data-201408.png

For more information on First Data SpendTrend, visit www.spendtrend.com or call SpendTrend Customer Care at 800-430-0169.

To participate in the SpendTrend conversation, please follow First Data at http://twitter.com/spendtrend.

About First Data

First Data is a global technology leader in the financial services industry. With 24,000 employee-owners and operations in 35 countries, the company provides secure and innovative payment technology and services to more than six million merchants and financial institutions around the world, from Main Street shops to the world's largest corporations. Today, businesses in nearly 70 countries trust First Data to secure and process more than 2,000 financial transactions per second, totaling $1.8 trillion a year. First Data's unparalleled infrastructure, scale and partnerships go "beyond the transaction" with next-generation point-of-sale technology fueled by powerful analytics to detect fraud, gain insights into consumer spending, and strengthen customer loyalty. All day, every day, First Data helps its clients thrive in the evolving world of commerce.

First Data Spend Trend, 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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