Consumer Card Spending Still Soft in June, First Data Says
International card processor First Data Corp announced that its measure of consumer spending on their debit and credit card was soft in June, indicating that consumers are still not returning vigorously to the market.
First Data provides card processing for roughly a third of the credit unions in the country that issue credit and debit cards. The firm's numbers suggest that some credit union income from card interchange may remain under pressure for some time.
"Consumers remained cautious in June with dollar volume growth of 6.8% (6.7% excluding Gasoline Stations) compared to May's growth of 9.2% (8.2% excluding Gasoline Stations)," the processor wrote in its July SpendTrend survey of June's numbers.
"[T]ransaction growth was 7.3% (7.2% excluding Gasoline Stations), a decline from May's growth of 8.4% (8.1% excluding Gasoline Stations). Overall growth slowed for the third consecutive month as lower consumer spending growth may reflect persistent high unemployment, an increase in personal savings and the expiration of certain government stimulus and benefit programs.
"Average tickets decreased -0.5% (unchanged excluding Gasoline Stations) in June after posting positive year-over-year growth for four consecutive months. The biggest drivers of lower average tickets were Food Services and Drinking Places (including Restaurants/QSR), Retailers and Services merchants," the processor said.