First Data Corporation, a global leader in electronic commerce and payment processing, released its First Data SpendTrend analysis for June 1 to 28, 2013, compared to June 2 to 29, 2012. SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards, and checks at U.S. merchant locations.
Year-over-year dollar volume growth was 7.1 percent in June, compared to May’s 6.0 percent growth. Despite falling gas prices, the cost of gas was higher on a year-over-year basis, which also supported the overall growth. Gas Station dollar volume growth returned to positive territory at 3.5 percent compared to last month’s growth of -2.0 percent.
Retail dollar volume growth remained healthy in June with growth of 5.5 percent as warm weather supported shopper foot traffic for Father’s Day gifts and early Fourth of July items. Building Material and Garden Equipment Dealers, with dollar volume growth of 13.4 percent, continued to experience stronger year-over-year and sequential dollar volume growth as the housing market gained momentum.
Average ticket growth was 1.0 percent in June, a jump compared to May’s growth of 0.2 percent as promotional activity continued to ease and shoppers showed an increased propensity to purchase bigger-ticket items. Several retail categories also saw higher average tickets compared to May. Overall Retail average ticket growth was 2.7 percent in June versus last month’s growth of 2.4 percent.
Continuing the trend from the beginning of 2013, credit card dollar volume and transaction growth surpassed both PIN and signature debit growth in June. Dollar volume growth on credit cards was 8.8 percent compared to PIN and signature debit growth of 4.4 percent and 6.9 percent.
“The combination of increased hiring, a snapback in housing markets, and rising equity prices are underpinning Americans’ confidence and encouraging them to spend,” says Krish Mantripragada, SVP, information and analytics solutions, First Data. “Continued growth in credit card dollar volume suggests increased demand for credit leading to purchases of higher ticket and costlier items.”
June Dollar Volume Growth CHANGE
Signature Debit +6.9%
PIN Debit +4.4%
Note: All transactions are same-store growth.