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First Data posts Oct SpendTrend report

November 21, 2013

E-commerce and payment processing provider First Data Corp. has released its SpendTrend analysis for Oct.1, 2013 through Oct. 30, 2013 compared with Oct. 2, 2012 through Oct. 31, 2012. The decline in payments by check accelerated while use of credit cards registered a healthy rise — up 3.8 percent year-over-year and 3.6 percent month-over-month.

Dollar volume growth in October was 6.8 percent — up from 5.3 percent in September, despite the political strife in Washington. Growth was supported by the onset of cooler temperatures, which drove sales of seasonal merchandise and early holiday advertising attracting shopper foot-traffic.

Retail dollar volume growth in October jumped to 5.6 percent compared with 3.6 percent for September. Retail spending growth accelerated toward the end of the month as the government shutdown ended and shoppers regained confidence.

Average ticket growth was .5 percent in October, up from -.2 percent in September. Gas station average ticket growth of -7.9 percent marked a 12-month low, while retail average ticket growth jumped to 1.8 percent — a full percentage point over September.

"Consumer spending growth gained momentum in October, which should provide retailers with an optimistic outlook heading into the holiday season," said Krish Mantripragada, SVP of information and analytics solutions at First Data. "Retailers should expect holiday spending to be modestly stronger compared to last year barring any number of external events that could negatively impact sales, such as poor weather or geopolitical events at home or abroad."

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