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First Data SpendTrend: Most payment forms down in January

February 14, 2014

Payments processor First Data Corp. has released its First Data SpendTrend analysis for the period of Jan. 1–31, 2014, as compared with Jan. 1–31, 2013. Year over year, spending via signature debit card and prepaid were both down, along with check purchases, which continued to decline. 

Dollar volume growth of 2.5 percent slowed from December's 3.4 percent growth as severe winter weather pummeled the Midwest and eastern half of the country, curbing consumers' ability to shop in stores. Overall transaction growth of 2.1 percent in January also slowed from December's growth of 3.1 percent.

Average ticket growth of 0.4 percent remained relatively in line with December growth of 0.2 percent. However, retail average ticket growth of -0.4 percent fell from last month's growth of 0.4 percent as retailers implemented widespread discounting in preparation for spring restocking and as shoppers gravitated toward those bargains.

According to Krish Mantripragada, SVP of information and analytics solutions at First Data:

The harsh weather conditions in January subdued some of the consumer spending growth and negatively impacted shopper foot-traffic; however, consumers' also shifted their attention toward basic commodities versus more discretionary items in preparation and response to the severe weather. Spending on credit continued to exhibit healthy growth in January as lending standards continued to ease and consumer confident levels remained relatively positive.

Read more about trends and statistics.